Energy provider Eon slashed its household tariffs on gas prices by six per cent on Monday to become the third company in Britain to do so following British Gas and Scottish & Southern Energy.

The price cut by Eon will benefit only 1.9 million British customers as the cut is not extended to those customers who are in to electricity-only or fixed-rate deals. Eon has nearly 5.5 million customers in Britain.  

The rate cut in gas prices have come after wholesale gas prices witnessed a huge fall over the past 18 months. While the gas price was at 100p per therm in mid-2008, now it has dropped below 40p.

After this cut, an Eon customer will have to pay close to £272 on an average as gas bill. The bill is still about 30 per cent higher than what a customer used to pay at the beginning of 2008.

Eon’s average dual fuel charges will now stand at £1,185 as compared to £1,158 provided by British Gas, the country’s cheapest energy provider. Yet to take a call on price cut, Npower is still the costliest energy provider in Britain.