EDF Energy to cut gas tariff by 1.3 per cent from 11 Feb

EDF Energy on Tuesday became the last of the big six energy companies to announce a gas tariff drop for residential customers, but added that its 1.3 per cent cut will take effect sooner than its rivals.

The cut will come into effect from 11 February, just days ahead of Npower’s 5.1 per cent cut set for 16 February and weeks ahead of cuts from British Gas, Scottish Power, and SSE.

EDF Energy remains behind Eon in the price cut race with the German-owned supplier becoming the first of the big six energy companies to cut its gas tariff, by 3.5 per cent, with immediate effect two weeks ago.

Meanwhile SSE said it will cut its gas bills by 4.1 per cent from 30 April, almost two months after its rivals will bring in similar cuts.

EDF Energy said late Tuesday afternoon that although its cut is the lowest in percentage terms the move means that EDF Energy’s standard dual fuel prices will be cheaper than all but one of the major suppliers.

“The vast majority of gas that EDF Energy bought for its customers was purchased well in advance and at previously higher prices. This, and the low standard prices already offered by EDF Energy, has limited the size of today’s reduction,” EDF Energy said in a statement.

EDF Energy chief executive Vincent de Rivaz added, “If wholesale gas prices create cost reductions which allow further price cuts these will be passed to customers as soon as possible.”

The big six ‘price war’ came following strong political pressure for the companies to pass on lower costs to customers after months of heavy wholesale price declines.

Conservative chancellor George Osborne said it is “vital” that the historic lows on the global oil and gas markets be passed on to consumers, saying the Treasury would investigate whether action should be taken against energy companies.

The warning was echoed by Labour party leader Ed Miliband who called for fast-track legislation to enable Ofgem to force suppliers to cut their bills.

Although the proposed law was overturned in parliament Labour continue to warn of energy price intervention if elected to government in the upcoming general election, a threat which is believed to be behind the hesitancy of companies to pass savings on.