Energy firm E.ON is to cut its gas prices by 3.5% with immediate effect.

Commenting on the move, Tony Cocker, Chief Executive of E.ON UK, said: "Today's 3.5% cut to our standard gas price and the launch of the UK's cheapest energy tariff, our one year fixed product, demonstrate that we fundamentally believe in doing the right thing for our customers.

"This is further evidenced by the fact we are the first supplier to reflect through our standard tariff the overall drop in wholesale gas prices this winter but also that, when our prices had to increase at the start of 2014 to reflect cost increases, for the second year running we announced later than any other major supplier and, on that occasion, at a lower average percentage increase level than any other major supplier.

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"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.

"However, today we've taken steps so we can make a price cut on our standard gas tariff at the same time as offering customers, existing and new, the chance to sign up to the UK's lowest priced energy tariff. As we have always said where it is possible we will try to pass savings on to our customers."

(CD/JP)