E.ON AG (EOAN.XE) plans to cut retail gas prices in Germany by up to 20% from April 1, Chief Executive Wulf Bernotat told daily Frankfurter Allgemeine Zeitung in an interview published Monday.
Bernotat further said retail power prices should remain stable in 2009, adding that they may fall in 2010 if wholsale prices continue to fall.
E.ON cut retail gas prices by an average of 4% Feb. 1, to reflect the sharp fall in crude oil prices, to which gas prices are linked.
The company's retail power prices were raised by up to 9.2% Feb. 1.
Bernotat further played down reports of a dispute with Russian natural gas monopoly Gazprom OAO (GAZP.RS), the company's biggest supplier of gas.
He said E.ON is in the process to evaluate whether or not the recent pricing row between Russia and the Ukraine, which resulted in supply disruptions in Europe, has caused any damages for E.ON. If that were the case, both companies would work out a common solution, Bernotat said.
E.ON's natural gas import unit, E.ON Ruhrgas AG, has recently said it may sue Gazprom for damages.