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Energy company cuts prices after MP raises concern, but Mulholland declares energy companies must go further

January 13, 2015 9:08 PM

Greg Mulholland, MP for Leeds North West, has today welcomed the announcement by Eon to reduce its gas price by 3.5%, having recently written to all six energy companies and Ofgem.

With the wholesale price of oil plummeting in recent months to $45 a barrel, Mr Mulholland has recently contacted all six major energy companies as well as Ofgem, calling for a reduction in household energy prices. Tuesday saw the announcement from Eon that they will be making a slight reduction in their charges. Whilst stating that this is clearly a welcome development Mr Mulholland feels that this does not go far enough. A 3.5% reduction is estimated to provide the average Eon customer with a £24 reduction annually.

Mr Mulholland stated:

"The big six energy companies have been very quick in the past to utilise any increase in the wholesale cost of fuel as a reason to increase costs to the consumer by anything up to 10-15%. The recent reduction in Oil price far outweighs previous increases and they have only provided a 3.5% reduction. This reduction is clearly not relative to the sizable increases of recent years and Eon, along with the other five, must do more to support their customers."

"Ofgem need to take a far stronger position to ensure that the energy companies do not continue to take advantage and exploit their customers. I have written recently to all six major energy companies and Ofgem regarding the need for a clear reduction in charges and will be contacting Eon again regarding their weak response."