By Jonathan Davies

E.On has announced that it will cut its household gas prices by 3.5% with immediate effect.

The price cut will shave off roughly £24 on the average annual bill.

Tony Cocker, chief executive of E.On UK, said "We are the first supplier to reflect through our standard tariff the overall drop in wholesale gas prices."

E.On is the first of the 'big six' energy suppliers in the UK to cut there prices following growing pressure to reflect the falling cost of wholesale prices.

Over the weekend, Business, Energy and Enterprise Minister Matthew Hancock wrote to the big suppliers demanding a price cut. Wholesale gas prices are around 30% cheaper than a year ago.

Mr Cocker said: "While oil prices have slumped, the gas price has remained volatile - some days up, some days down - and many of the other non-energy costs that we don't control but make up a customer's bill have increased and are set to increase further

"We have made this decision knowing that our ability to recover costs, should the market outlook change in the months or years ahead, may be limited but we urge all political parties to recognise the realities of the energy industry and help us to continue to do the best for all of our customers."

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