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E.ON to cut gas prices

E.ON is to be the third big UK energy company to cut its gas bills for households. 1.9 million homes will benefit from a 6% reduction from 31 March. The average annual bill paid by monthly direct debit will fall by £42 leaving an average dual-fuel (gas and electricity) customer paying £1,185 per year.

The move comes after the Government and the regulator Ofgem urged energy companies to cut residential bills to reflect lower wholesale prices. In February British Gas cut gas prices by 7% and Scottish and Southern Energy promises to cut prices by 4% from 29 March. Energy companies have come under severe criticism for failing to reduce their prices during the bitterly cold winter.

The changes are expected to push the others in the ‘big six’ energy providers to cut their prices too. Ian Parrett, energy analyst at Inenco, said, ‘It only takes one or two companies to cut prices to start a price war and once that starts there is scope for significant reductions in bills’, adding, ‘the cold winter has left many people accurately aware of the price of energy’.

Virgin Money high street bank to charge an account fee

Virgin Money says it will charge customers a fee for its current accounts in a bid to replace high overdraft charges when it launches banking services later this year. The compulsory upfront fee would have to be paid regardless of how much money was in the account. According to the company, the monthly fee would be low and customers would not be required to pay in set monthly amounts.

Jayne-Anne Gadhia, Virgin Money’s chief executive, told the BBC, ‘We want to live up to Virgin’s ethos of making sure people aren’t ripped off, that they know what they’re paying for with no hidden charges’.

 

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