11 January 2012
Move strengthens EDF Energy’s position as cheapest supplier for dual fuel and electricity only, based on a national average of regional standard prices
Gas cut of 5% means new standard dual fuel prices will be cheaper at typical use than all major competitors’ current prices – for all payment types and in all regions1
EDF Energy today announced it will cut its gas prices by 5% – becoming the FIRST major supplier in 2012 to announce it will pass on falling wholesale prices to its customers.
The company was the LAST of the major suppliers to raise its energy prices in the autumn and is the FIRST to announce a cut.
In addition, EDF Energy’s price rises last autumn were the LOWEST of the major suppliers.
It’s the latest step in EDF Energy’s strong track record of offering its customers fair and competitive prices and, in particular, to provide what help it can during winter. EDF Energy believes fair tariffs are vital to address the issue of consumer trust.
Vincent de Rivaz, Chief Executive of EDF Energy, said: “What customers want more than anything else is fair, clear and transparent prices. We know they want action rather than words. That is why we are the first major supplier to announce a cut and were the last to increase prices.
“Today’s price cut is further evidence of our commitment to be fairer, simpler and more transparent. This is vital for consumer trust. We are working on a range of further steps as a responsible energy company to continue to build trust.”
The lower gas price announced today will come into effect on February 7. The move will help customers over the winter when they use the most gas.
Since EDF Energy’s last price change on 10 November 2011, the one-year wholesale gas price has decreased by 9.2%. Industry analysis shows wholesale prices make up about half of the final domestic gas bill.
Customers with typical consumption switching to take advantage of EDF Energy’s new standard dual fuel prices and paying by monthly direct debit could save up to £89 a year compared to our largest competitor’s current equivalent prices, based on a national average of regional standard prices2.
For the second winter running3 EDF Energy was already the cheapest major supplier for typical dual fuel and electricity only4 customers based on a national average of regional standard prices. Its new standard dual fuel prices will be cheaper at typical use than all major competitors’ current prices – for all payment types and in all regions1
EDF Energy’s standard electricity prices continue to be the cheapest among the major suppliers based on a national average of regional prices and will stay at the same level. Last autumn the company limited its electricity price rise to inflation only, compared with larger increases by other suppliers.5
Martin Lawrence, Managing Director of Energy Sourcing and Customer Supply at EDF Energy, said: “Wherever people live and however they pay, our new standard dual fuel prices will be cheaper at typical use than those currently offered by all our major competitors.
“We know customers are finding it difficult, particularly during winter. So I am pleased we have been able to make this announcement now and help our customers at a time they use more gas, just as we did last winter when we were the only major energy supplier to freeze prices.”
Ends
For more details contact:
Nick Foley
Tel 020 7752 2196
Joanne Smalley
Tel: 020 7752 2181
Phillippa Coates
Tel: 020 7752 2266
Notes to editors
EDF Energy’s initiatives to build trust
EDF Energy last year changed its tariff structure to make it simpler and more transparent. Customers now pay a standard unit rate for all energy consumed, plus a small standing charge per day to cover fixed costs such as metering.
In addition, it announced it was suspending unsolicited door to door selling of residential energy, and invested in new customer service systems which will help customers manage their energy bills more effectively. The company has apologised to customers who experienced any inconvenience during the implementation process.
EDF Energy was the only major energy supplier to freeze prices for customers last winter, the first to launch a tariff designed to help our most vulnerable customers, the first to equalise costs for customers with pre-payment meters and also led the way in supporting those in debt with our EDF Energy Trust Fund.
This winter we are also offering free insulation to anyone who does not already have it – whether they are a customer or not.6
All bill comparisons are calculated at typical consumption (3,300kWh electricity and 16,500kWh gas per year) and include all relevant discounts and VAT charged at 5%. Comparisons of EDF Energy’s current and new prices to the current prices of the other major suppliers are based on published prices as at 11 January 2012. Major suppliers are defined as EDF Energy, British Gas, Scottish & Southern Energy, E.On, npower and Scottish Power.
- Following this price decrease, at typical consumption EDF Energy’s standard dual fuel prices will be cheaper than the current standard prices of the other major suppliers, across the whole country for all three main payment methods (monthly direct debit, cash/cheque or prepayment).
- Based on a comparison of EDF Energy’s new standard prices and British Gas’ current equivalent prices, average EDF Energy dual fuel bill for a customer with typical consumption paying by monthly direct debit, will be £89 per annum lower (£1,129 per year compared to £1,218 per year).
- Based on a national average of regional prices, between 1 December 2010 and 1 March 2011 EDF Energy’s standard prices were the cheapest of the major suppliers for both dual fuel and electricity only customers with typical consumption.
- Based on a national average of regional prices, since 2 October 2011 to date EDF Energy has had the cheapest standard tariff of all major suppliers for both dual fuel and electricity only customers with typical consumption, across the three main payment types (monthly direct debit, cash/cheque and prepayment).
- Scottish Power increased electricity prices by 10% (and gas by 19%), which came into effect on August 1, 2011; British Gas increased electricity prices by 16% (and gas by 18%), which came into effect on 18 August; E.ON increased electricity prices by 11.4% (and gas by 18.1%), which came into effect on 13 September; SSE increased electricity prices by 11% (and gas by 18%), which came into effect on 14 September; Npower increased electricity prices by 7.2% (and gas by 15.7%) , which came into effect on October 1. EDF Energy increased electricity prices by 4.5% (and gas by 15.4%), which came into effect on November 10.
- Not all properties will be suitable for insulation. Applicants will not be eligible for free insulation if they already have pre-existing cavity wall insulation, loft insulation that's more than 60mm thick, or if we're unable to insulate at least two thirds of the total loft surface or wall cavities. If an applicant has a large or non-standard property, or if we need to use specialist systems or equipment to carry out the work then there will be a charge, but applicants will be told about these when the survey is done. Free insulation offer only available for applications made before 31 March 2012. Please note that due to high demand applicants may experience a delay in insulation installation and to avoid delivery issues this offer will be reviewed if the number of applications made exceeds 200,000.