E.ON subsidiary Powergen has announced that it will be cutting its residential tariffs for gas and electricity from the end of April. The move makes the energy firm the fourth of the UK's 'big six' to reveal plans to reduce prices in 2007.
<p>Customers will see their prices fall by 16% for gas and 5% for electricity, effective from April 30, 2007. These decreases will ensure that Powergen remains cheaper than British Gas when these new prices become effective, the E.ON division said in a statement.<br /><br />The decrease means that the annual cost for an average Powergen dual fuel customer reduces from GBP1,005 to GBP913. <br /><br />Scottish and Southern Energy was the first UK utility to pledge to reduce prices, but the Scottish firm has yet to give specific details of when and by how much by it will cut its prices. British Gas was the first to give exact details, announcing recently that it was reducing prices on March 12, 2007.<br /><br />Since the British Gas announcement, both RWE npower and Powergen have given details of their own price cuts, both making the prominent statement that they will be cheaper than British Gas. However, as their new price structures do not come in until the end of April, British Gas will be on average cheaper than its two rivals for over a month and a half in the interim.</p>