E.On cuts prices, which we didn't see coming
No sooner had we said that energy companies wouldn't be cutting their prices, along come E.On to make us look like damned fools.
E.On is the first of the Big Six who have cut their prices, thanks to falling wholesale costs. They've said that there'll be a 3.5% reduction in their standard gas tariff. That's expected to save around 2 million households £24 on a typical annual bill. It isn't much, but it is better than a punt in the gusset.
The good thing here, is that E.On's actions will put pressure on the competition, which means the other five companies in the Big Six will have to look at following suit now that wholesale gas prices are 27% lower in 2015 than they were last year.
Of course, last week the Treasury said that they'd be investigating energy companies to find out why prices had not fallen despite the lower wholesale costs. The government should've been looking into energy prices years ago, but obviously, now there's an election coming up, they've decided they care.
There's also going to be a Commons vote this week which will look at giving Ofgem new powers to force energy companies hands when it comes to how much they charge customers.
Given the size of the drop in wholesale prices, E.On's price drop is rather underwhelming, but for now, it is better than nothing.