27th January 2015
EDF Energy has become the last of the big six suppliers to announce a cut to gas prices, but the drop has been described as ” absolutely paltry” at just 1.3%.
The reduction will decrease EDF Energy’s average standard variable gas prices from £646 to £637 a year and its dual fuel prices from £1,164 to £1,155.
It will come into effect on February 11 and will benefit about one million customers.
Suppliers have been under pressure to pass on dramatic falls in wholesale gas costs to consumers, but critics have argued that energy companies are not doing enough.
Reductions announced by the other five major suppliers have been between 3.5 and 5.1%, but consumer groups have argued these cuts are less-than-generous compared to the 20% fall in wholesale prices.
EDF said the vast majority of gas bought for its customers was purchased well in advance and at previously higher prices. It said that this and the low standard prices already offered by EDF Energy, has limited the size of today’s reduction.
If wholesale gas costs continue to fall in the coming months allowing further price reductions, EDF promised pass these on to customers as soon as possible.
Stephen Murray, energy expert at MoneySuperMarket said: “It was inevitable that we would see the final of the ‘big six’ cut its prices this week and this is truly the most underwhelming of the lot, this time from EDF Energy. On top of that, we see that bill payers will again not feel the full benefit of lower bills immediately.
“Effective on 11th February, EDF’s customers will see overall energy bills fall by just £9 a year if paying by monthly direct debit (£1,164 a year, down to £1,155). An absolutely paltry price cut in comparison to the 20 per cent fall in wholesale prices that we have seen. However, EDF is still the second cheapest of the Big Six for standard customers, but that won’t come as any consolation to its customers.
Murray added: “It’s been frustrating to see all but one of the big six choose to delay a cut in prices. They have all ensured that they gain a few extra week at higher prices when energy consumption by consumers remains high in the colder weather. In this instance, E.ON should be applauded for passing on its price decrease straight away so its customers feel an immediate benefit whilst the others should be made to justify their decisions to delay price cuts for their customers.”
He urged customers to save themselves more money by searching for the best deal on the market and said that the average standard monthly direct debit customer could wipe up to £242 off their bills by switching to Extra Energy’s Fresh Fixed Price Jan 2016 v10.