7 February 2012
Company is cheapest major supplier of standard dual fuel after 5% gas price cut
EDF Energy’s gas price cut comes into effect today making it the CHEAPEST major supplier of standard dual fuel based on a national average of regional prices.1
The company was the FIRST major supplier this year to announce it was passing on falls in wholesale energy prices to customers (January 11).
EDF Energy believes that offering highly competitive, fair and clear prices is vital in order to build trust and improve public confidence in its business.
The company said its gas customers typically use five times more gas in winter than summer.2 EDF Energy has a strong track record of helping keep prices low during the colder autumn and winter months in order to help their customers at the time of year they use the most energy.
- The company was the cheapest major supplier of standard dual fuel between October 1, 2011, and January 31, 2012, based on a national average of regional prices at typical usage.
- It offered the lowest prices of all major suppliers for standard dual fuel between December 10, 2009, and February 28, 2010, based on a national average of regional prices at typical usage.
- A year earlier in 2009, it offered the cheapest standard dual fuel prices among the major suppliers between January 1 and March 30 based on a national average of regional prices at typical usage.
The company’s latest price change – which today sees its standard gas prices cut by 5pc – prompted its main competitors to quickly follow suit and announce they would lower their standard tariffs.
But EDF Energy’s analysis shows that, based on a national average of regional prices, none of its main rivals have knocked EDF Energy off the top of the best value table for standard dual fuel prices at typical usage.
In fact, our largest competitor’s new dual fuel prices are STILL more expensive than EDF Energy’s old prices.3
Based on a national average of regional prices an EDF Energy dual fuel customer on its new standard tariff with typical energy usage and paying by monthly direct debit could save up to £63 a year compared to customers on the equivalent tariff with our largest competitor.4
EDF Energy’s position today as the cheapest major supplier of dual fuel is also confirmed in an independent table compiled by Consumer Focus.5
Martin Lawrence, Managing Director of Energy Sourcing and Customer Supply at EDF Energy, said: “It’s vital we can demonstrate to our customers that we are offering them a consistently fair deal on prices in order to earn their trust – and that’s what we are determined to do.
“We recognise that the public are often suspicious of the energy industry as a whole, particularly when it comes to pricing.
“But we have a strong and proven track record for offering our customers highly competitive prices at the times of year when they use the most energy.
“For typical customers we were the cheapest major standard dual fuel supplier before the price cuts, and will once again be the cheapest dual fuel supplier after all the price cuts have come into effect.
"Our customers can be confident that they are consistently getting some of the best deals in the market.
"We know our customers want fair, clear and transparent pricing and we will continue to deliver on all three."
League table of dual fuel direct debit prices (taking account of all new prices)
1. EDF Energy £1,129
2. Co-operative Pioneer £1,145
3. Npower £1,149
4. E.ON £1,160
5. SSE £1,161 (INDICATIVE)
6. Scottish Power £1,170
7. British Gas £1,193
Ends
For more details contact:
Nick Foley
Tel 020 7752 2196
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.
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 and new prices of the other major suppliers are based on published prices as at February 6, 2012. Major suppliers are defined as EDF Energy, British Gas, Scottish & Southern Energy, E.On, npower and Scottish Power.
- This is based on a national average of regional prices for standard variable dual fuel using the published rate card prices provided by npower, E.ON, Scottish Power and British Gas and the indicative prices of SSE.
- On average, an EDF Energy customer will use 5.4% of their total annual gas consumption in July and August – compared to 28.6% of annual total gas consumption in December and January. This equates to 5.3 times more usage in December and January when compared to usage in July and August.
- Under EDF Energy’s old prices, a typical dual fuel customer would have paid £1,165 per year. An equivalent customer supplied by British Gas will pay £1,193 a year under the prices it announced on January 12, 2012. Comparisons based on national average of regional prices for a customer paying by monthly direct debit, and includes relevant discounts and VAT charged at 5%.
- A typical dual fuel customer supplied by EDF Energy will pay £1,129 a year. An equivalent customer supplied by British Gas will pay £1,193 a year under the prices announced on January 12, 2012. Comparisons based on national average of regional prices for a customer paying by monthly direct debit, and includes relevant discounts and VAT charged at 5%.
- A comparison of the prices charged by the major suppliers both before and after their price cuts come into effect was published by Consumer Focus in a press release published on January 13, 2012. See link below. http://www.consumerfocus.org.uk/news/npower-price-cut