LONDON (Reuters) - German utility E.ON (DE:EONGn) has cut British household gas prices by 3.5 percent, it announced on Tuesday, the first of Britain's largest six energy suppliers to pass on to consumers savings from a recent drop in wholesale prices.
E.ON said the price cut would reduce customers' gas bills by about 24 pounds ($36) a year, putting pressure on the country's other utilities to follow suit.
Wholesale gas prices have fallen on the back of a steep drop in oil prices and British politicians, gearing up for a May election, have urged energy companies to pass on those savings.
"Given the possibility of a price freeze, we are undoubtedly taking a risk today, but we always put our customers first," said Tony Cocker, chief executive of E.ON UK.
The leader of Britain's opposition Labour party, Ed Miliband, has promised to freeze energy prices if his party is elected in four months' time.
