EDF the latest of Big Six to cut energy bills
Energy firm EDF Energy has become the latest of the Big Six energy suppliers to agree to price cuts, after saying it would cut its tariffs by 1.3%.
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The cut would take effect from 11 February and would benefit around one million customers, the French-owned said in a statement on Tuesday.
EDF added that while its price cut is the smallest of any of those announced by the other Big Six providers, as it will reduce annual bills by just £9, its new standard dual fuel price of £1,155 a year was cheaper than all but one of its rivals.
“This [the recent fall in wholesale prices] and the low standard prices already offered by EDF Energy, has limited the size of today’s reduction,” the company said.
EDF added that it had already implemented a series of cuts to its fixed price deals, which have a market of about 1.5m customers.
“We continue to look for ways to bear down on costs for customers and will offer more help to the most vulnerable, for example encouraging them to switch to fixed tariffs,” said group chief executive Vincent de Rivaz.
“If wholesale gas prices create cost reductions which allow further price cuts these will be passed to customers as soon as possible.”
British Gas, E.ON, Scottish Power, SSE and nPower have all agreed to cut prices but the scale of the reduction has been widely criticised by consumer groups, as they have not met estimates suggesting that bills could be reduced by £136 a year.
The estimate was based on the assumption that energy providers would pass on the full decline in wholesale prices, which hasn’t happened.
“People want to see bigger savings now and energy companies need to up their game if they want their customers to stick around,” said Energy Secretary Ed Davey.
“If people aren’t satisfied, now is the time to shop around for a better deal, switch suppliers and save.”
Energy Minister Matthew Hancock said the cuts were a positive first step and that the government would continue to work alongside the Big Six to ensure further drops in wholesale prices result in further price cuts.
“Of course I will continue to meet with the big firms to make sure that hardworking households are getting a fair deal,” he said.
“This case is by no means closed and we will be watching the global gas markets very closely, expecting to see any further savings passed on.”
On Tuesday, EDF shares closed up 0.52% at €24.00