E.ON 'will not review gas and electric contracts'

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E.ON has announced it will not renew gas and electric contracts with companies operating on more than 50 sites using its non-half hourly electricity metres and non-daily gas metres.

In a letter from E.ON to the companies concerned, which was uncovered by Supply Management (SM), the firm said it would not bid on new contracts following a review of its business practices.

The letter said: "As a result [of the review], we have decided to put the greatest emphasis on the supply of energy to half-hourly gas users and we will withdraw from the large multi-site supply market."

A spokesperson for the company told SM that all customers affected by the decision had been notified, adding that the resources expended on renewing and maintaining multi-site contracts would be better spent on other projects.

Meanwhile, E.ON has revealed plans to cut costs by €1.5 billion (£1.3 billion) in order to reach its annual earnings target.

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