EDF Energy – part of the eponymous state-owned French nuclear power conglomerate which owns the two Scottish nuclear power plants – has become the last of Britain’s ‘Big Six’ energy retailers to drop its household gas prices.
It will cut gas prices by 1.3% on February 11 – thereb making the smallest cut to consumer bills among the UK’s six largest suppliers, which have all now announced price reductions which have been triggered by an average cut in wholesale gas costs of around 25%.
Wholesale crude and gas prices have tumbled due to a global supply glut, reducing some of the energy purchase costs utilities incur.
EDF Energy’s rivals have cut gas prices by nearly five times this amount, with RWE npower implementing the steepest reduction of 5.1%.
The reduction will decrease EDF Energy’s average standard variable gas prices from £646 to £637 a year – a drop of £9 a year, or just 75 pence per month – and its dual fuel prices from £1,164 to £1,155. The cut will benefit around one million customers.
EDF Energy defended the shallowness of its price-cut, saying it had bought most of its gas well in advance at higher prices and that its tariffs were already lower than those offered by rival supplier.
Vincent de Rivaz, Chief Executive, said: “If wholesale gas prices create cost reductions which allow further price cuts, these will be passed to customers as soon as possible”.