27 Jan 15

EDF Energy cuts standard gas price by 1.3%

  • 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[1].

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[2]. 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 [3].

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 suppliers[4].

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[5]. 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.

Beatrice Bigois, Managing Director of Customers at EDF Energy, said:

“EDF Energy has a strong track record of acting independently in the interests of customers who have benefitted from the best standard variable prices for the majority of the last three years, in comparison to other major suppliers. Today’s price cut means our standard tariffs will continue to be among the most competitive in the market.

“At the same time, one and a half million customers are benefitting from fixed price deals with no exit fees.”

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.”

ENDS

Standard dual fuel prices of the major suppliers:

Supplier

Standard dual fuel prices prior to January 13 2015

New standard dual fuel prices

Date that new prices will be implemented

E.On

£1,169

£1,145

January 13 2015

EDF Energy

£1,164

£1,155

February 11 2015

British Gas

£1,193

£1,156

February 27 2015

SSE

£1,186

£1,158

April 30 2015

Scottish Power

£1,199

£1,167

February 20 2015

npower

£1,204

£1,169

February 16 2015

All prices in the table above calculated on a standard metered dual fuel customer paying by direct debit and receiving paper bills, averaged across all regions using Ofgem typical consumption. Post implementation bill values shown are based on actual prices, if known or indicative prices from the supplier’s press release that accompanied their price change.



[1] Based on indicative prices for British Gas, Npower, SSE and Scottish Power. Comparison is based on a customer paying by direct debit, receiving paper bills, averaged across all regions using Ofgem typical consumption. Ofgem typical consumption defined as 13,500kWh gas per year and 3,200kWh electricity per year. Major suppliers defined as: EDF Energy, British Gas, EON, Npower, SSE and Scottish Power.

[2] Prices based on a customer paying by direct debit, receiving paper bills, averaged across all regions using Ofgem typical consumption. Ofgem typical consumption defined as 13,500kWh gas per year and 3,200kWh electricity per year.

[3] Comparison is based on a standard metered dual fuel customer paying by direct debit, averaged across all regions using Ofgem typical consumption. Ofgem typical consumption defined as 13,500kWh gas per year and 3,200kWh electricity per year. Major suppliers defined as: EDF Energy, British Gas, EON, Npower, SSE and Scottish Power. Comparison correct for period: 01/02/2012 – 27/01/2015.

[4] Comparison is based on a standard metered dual fuel customer paying by direct debit, receiving paper bills, averaged across all regions using Ofgem typical consumption. Ofgem typical consumption defined as 13,500kWh gas per year and 3,200kWh electricity per year. Consumption has been seasonally shaped to reflect annual usage patterns. Other major suppliers included for comparison are: British Gas, SSE, E.On, npower and Scottish Power. Comparison correct for period: 28/01/2012 – 27/01/2015.

[5] Four of EDF Energy’s Blue+Price Promise tariffs launched in 2014 were cheaper than the tariffs they replaced – Blue+Price Promise July 2015 @£1,070 (replacing Blue+Price Promise June 2015 @£1,098), Blue+Price Promise August 2015 (@£1049), Blue+Price Promise March 2016 (@£1039) and Blue+Price Promise May 2016 (@£999). Comparison based on a national average of regional prices, for dual fuel customers paying by direct debit at typical consumption.

For more information contact:

Louis Blake
Senior Media Manager (Corporate)
020 7752 2248
07875 114 307
louis.blake@edfenergy.com

Charlotte Mitchell
Senior Media Officer (Customers)
0207 752 2196
07875 114 872
charlotte.mitchell@edfenergy.com

EDF Energy Media
Media Relations Team
01452 652233
media@edfenergy.com

EDF Energy

EDF Energy is one of the UK’s largest energy companies and the largest producer of low-carbon electricity, producing around one-fifth of the nation's electricity from its nuclear power stations, wind farms, coal and gas power stations and combined heat and power plants. The company supplies gas and electricity to 6 million business and residential customer accounts and is the biggest supplier of electricity by volume in Great Britain.

EDF Energy’s safe and secure operation of its eight existing nuclear power stations at sites across the country makes it the UK’s largest generator of low carbon electricity. EDF Energy is also leading the UK's nuclear renaissance and has published plans to build four new nuclear plants, subject to the right investment framework.

These new plants could generate enough low carbon electricity for about 40% of Britain’s homes. They would make an important contribution to the UK’s future needs for clean, secure and affordable energy. The project is already creating business and job opportunities for British companies and workers.

Through Our Better Energy Ambitions, EDF Energy has developed one of the biggest environmental and social programmes of any British energy company.

In 2014 EDF Energy received seven ‘Big Ticks’ in the Business in the Community (BITC) Responsible Business Awards. In 2013 EDF Energy received the Environmental Leadership for Behavioural Change Award in the national Environment and Energy Awards and was highly commended in the first ever pan European Corporate Social Responsibility Awards scheme for its Sustainable Schools programme – the Pod.

EDF Energy is part of EDF Group, one of Europe’s largest power companies. The company employs around 15,000 people at locations across the UK.

To find out more about the UK's energy challenges look at www.edfenergy.com/energyfuture/