E.ON said that the customers paying by monthly Direct Debit will save GBP42 off their annual gas bills. The company added that its WarmAssist product’s customers will benefit even sooner and see a greater reduction in bills from March 1.

After research with customers, the company will also be sending out new design bills throughout spring. These have been clarified and simplified, making the key information more prominent so they are easier to understand. E.ON said.

Graham Bartlett, managing director of retail business at E.ON, said: “We’ve been very aware of the effect of both the recession and the exceptionally cold winter on our customers, especially those most in need, so we are pleased to see the opportunity to now reduce prices. The fall in current wholesale prices is only part of the pricing story as our customers are using gas bought over a number of years at much higher prices than today.

“In addition, our customers have been telling us that their bills need to be clearer, better laid out and easier to understand. We’ve listened, and our new bills have all the relevant information up front so our customers can see exactly how much energy they’re using and hopefully where they can make savings.”

The move comes after British Gas and SSE cut their domestic gas prices by 7% and 4% respectively.