E.ON cuts average gas bills by £24

E.ON has become the first UK energy supplier to react to falling wholesale prices by announcing an average 3.5% cut in gas tariffs from today.

The firm, which has 4.5 million household customers, said the move is equivalent to £24 off the average annual gas bill, or two weeks' gas use.

Sadly, those on one of the supplier's fixed-rate tariffs will not benefit from the change as prices are locked in.

The good news for customers of other energy suppliers is that they probably won't need to wait long for a price cut of their own, as rivals tends to announce cuts around the same time.

That is significant if you're thinking about switching suppliers, as it might be worth waiting to see who comes out cheapest after the round of cuts before changing.

E.ON UK chief executive Tony Cocker said Labour's proposed "price freeze", which wiped a combined £1.5bn off the value of SSE and British Gas yesterday, meant the company was "undoubtedly taking a risk" by cutting tariffs.

Read more about energy firms on AOL Money

Big six energy firms lose out to smaller competitors

UK energy market 'would continue'

UK wastes billions through energy inefficiency