EDF – the French owned nuclear-to-renewables generator – and British Gas have fallen into line with the rest of the UK Big Six energy provides and today cut their retail gas prices.
EDF Energy will cut its standard gas price by 5% with effect from 24 March. The reduction will decrease EDF Energy’s average standard gas price by £31 and will benefit around 900,000 customers.
The 5% price reduction announced today is linked to falls in wholesale gas costs. However, despite improvements to operating efficiency, external costs included in a customer’s electricity and gas bills have increased, some significantly. This has limited the size of today’s gas reduction and the company’s ability to pass on falls in wholesale electricity costs.
Centrica – which owns the Scottish and British gas brands – will reduce gas prices by 5.1%, benefiting around 6.8 million customers from 16 March, saving consumers £31 a year.
British Energy Minister Amber Rudd commented: “I’ve spoken to bosses at the Big Six recently to make crystal clear that the Government expects suppliers to pass on cost reductions to consumers. Six major suppliers have now announced cuts in their tariffs – it’s a good start but there’s more to do.
“That’s why it’s right that the CMA (Competition Authority) is investigating to make sure that consumers are getting a fair deal not a rough deal on their energy. We continue to watch suppliers like a hawk.”
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