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The company claims that on average, bills will be cheaper for its pay monthly direct debit customers than those customers with British Gas.  The decrease of electricity prices is effective from the end of March, and 4.1m E.ON customers will benefit from the reduction.

Graham Bartlett, managing director of E.ON's Retail business, said:‘We know our customers are facing difficult times and we are continuing to monitor the market to ensure the prices we offer our customers are as competitive as possible.'

E.ON has also announced the expansion of its ‘WarmAssist' product, aimed at providing additional help to its vulnerable older customers with prepayment meters. Customers aged 60 or above who are in receipt of Pension Credit will receive 15% off E.ON's standard electricity and gas prices.