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Citizens Advice calls for more price cuts

Citizens Advice has responded to Eon’s price cut of 5.1 per cent, urging more energy companies to follow suit.

Citizens Advice chief executive, Gillian Guy said: “Households are paying over the odds on their energy bills.

“Wholesale costs are plummeting but consumers aren’t feeling the benefit. It is encouraging that Eon is to cut its gas bills but the reduction in savings for people will be modest. The company should also help customers by cutting electricity bills.”

She added: “The industry as a whole urgently needs to step up to the plate – suppliers need to play fair with customers and start passing on the major savings they have been making from cheap wholesale costs.”

Executive director for Which?, Richard Lloyd, has also commented on the announcement: “E.ON has taken the first step by cutting its prices for gas deals but given plummeting wholesale costs, consumers are bound to question if it’s enough.

“In a market where competition isn’t working effectively more has to be done to make pricing fair, switching easier and ensure the most vulnerable are protected.  The regulator must use the competition inquiry to ensure it introduces measures that fix this broken market so that it works for consumers.”

 The remaining five of the big six are yet to announce any price changes, but a spokesman for SSE said: “We constantly review prices and have cut them twice in the last two years. If we can cut them again we will.”