• EDF Energy’s new standard dual fuel price will be £1,155 a year – cheaper than all but one of the major suppliers and takes effect within days
• EDF Energy will write to its vulnerable customers offering support including help to move to a fixed price deal
• If falling wholesale gas costs allow further price reductions, these will be passed to customers as soon as possible
• Today’s cut follows four price reductions in short-term fixed tariffs during 2014

EDF Energy has announced a 1.3% cut in its standard variable gas price effective from February 11. The move means that EDF Energy’s standard dual fuel prices will be cheaper than all but one of the major suppliers.

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. The cut will benefit around 1 million customers.

The 1.3% price reduction announced today is linked to the recent falls in wholesale gas costs. However, 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.

If wholesale gas costs continue to fall in the coming months allowing further price reductions, EDF Energy will pass these on to customers as soon as possible.

EDF Energy’s standard dual fuel prices have been the cheapest of the major suppliers for 143 weeks during the last three years. In total, EDF Energy has had one of the cheapest two standard dual fuel tariffs of the major suppliers continuously during this time.

For example, a standard dual fuel customer would have saved between £34 and £140 with EDF Energy in the last three years compared with other major supplier.

Today’s announcement on standard variable gas prices follows a series of cuts to fixed tariff prices. Four price cuts saw short-term fixed tariffs fall from £1,098 to £999 in 2014, including a cut of more than 3.8% in December. 1.5 million EDF Energy customers choose fixed tariffs which is 40% of the company’s customers. 

The company is again writing to its vulnerable customers, offering further support including help to move to a fixed price deal.

Vincent de Rivaz, Chief Executive of EDF Energy, said: 

“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. If wholesale gas prices create cost reductions which allow further price cuts these will be passed to customers as soon as possible.”

Responding to EDF’s gas price cut announcement,  Energy and Climate Change Secretary Ed Davey said:

“People want to see bigger savings now and energy companies need to up their game if they want their customers to stick around. If people aren’t satisfied, now is the time to shop around for a better deal, switch suppliers and save.

“This is exactly why we’re backing the Competition and Markets Authority investigation – to ensure consumers get a fair deal.”