EDF has stated that it will be cutting its gas prices by 1.3%. This makes it the very last of the ìbig sixî energy companies that will be making a reduction to its prices in the aftermath of the drop in the price of wholesale gas. The reduction in wholesale price is largely the result of a plummet in the price of oil globally.
EDF said that the cut will benefit around one million customers when it comes into effect on the 11th of February. EDF have been under severe criticism for being the last of the giant energy companies to reduce their gas tariffs and also because the reduction of 1.3% is the smallest out of all of them.
EDF have defended their position by arguing that their typical dual fuel cost to customers was the least expensive compared to all but one of their rivals. They also said that as soon as the energy market allowed further cuts, they would pass them on to their customers.
The EDFís chief executive, Vincent de Rivaz, stated, “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.î
“If wholesale gas prices create costs reductions which allow further price cuts these will be passed on as soon as possible.”
The Competitions and Market Authority are looking into the energy industry tariffs after pressure from both consumer groups and those of political authority who suggest that they have not been passing on fair price reductions to their customers.
Wholesale gas costs have been reduced by roughly 30% in the last year, and consumer parties have argued that in order for energy companies to pass the entirety of the wholesale savings on to their consumers, they would have to cutback fees by £140 per annum.
One of those of political influence is the Energy and Climate Change Secretary Ed Davey. He said: ìPeople want to see bigger savings now and energy companies need to up their game if they want their customers to stick around.î
He went on to explain: ìThis is exactly why weíre backing the Competition and Market Authority investigation- to ensure consumers get a fair deal.î
EDF lined up another spokesperson for the defence, Beatrice Bigois, who is managing director of customers at EDF. She stated: ìEDF Energy has a strong track record of acting independently in the interests of customers who have benefited from the best standard variable prices for the majority of the last three years, in comparison to other major suppliers. Todayís 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 benefiting from fixed price deals with no exit fees.î
In the midst of a growing storm, we await the investigation by the Competition and Market Authority in order to glean the full extent of how fair the prices for customers have been.
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