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British households could be in for some much needed good news after EDF Energy announced their intention to cut gas prices by 5% next month. According to the leading energy company, the cuts have been made possible by a decrease in the wholesale cost of gas. The wholesale cost of gas has fallen by 9.2%, yet many of the leading six energy firms have not reduced their prices in line with the reduced cost. Now, following the move by energy company, Ovo, EDF is also reducing their prices by 5%.
The announcement couldn’t come at a better time for Brits, who were plagued by energy price hikes during 2011.
These increases sparked widespread outrage as households struggled with the increased costs – causing widespread dissatisfaction with energy providers. According to Which?, 40% of Brits were unhappy with their energy supplier, with the ‘Big Six’ receiving four million complaints in the last year alone. These new changes to prices are designed to increase consumer satisfaction and are likely to become widespread as the other ‘Big Six’ are expected to match the EDF cuts in order to maintain price competition. Of course, whilst EDF are the first of the major providers to offer cuts their decision was actually preceded by smaller companies, such as Co-operative Energy and Ovo Energy, who announced reductions last month. Commenting on the situation, EDF’s Chief Executive, Vincent de Rivaz, explained “customers want [...] fair, clear and transparent prices [...] they want action rather words [and] that is why we are the first major supplier to announce a cut.”
De Rivaz also commented on how EDF were the last of the energy suppliers to announce price increases in the first place, positioning them as a conscientious supplier. The new tariffs are set to be introduced at the beginning of next month (7 February) and will apply to gas prices only.
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