EDF Energy has today become the last of the big six energy providers to announce a gas price cut this year, but prices will only fall by a tiny 1.3% and not until 11 February.
The move will shave just £9 off EDF's average £1,164 annual dual fuel bill for those who pay by monthly direct debit. But customers can save far more by switching to a cheaper deal. (Join our free Cheap Energy Club to find the cheapest tariff for you.)
The cheapest short fix costs £913/year for the average dual fuel customer paying by monthly direct debit from Extra Energy – a saving of around £242 on EDF's standard tariff even after factoring in the price cut.
The reduction applies to one million EDF customers on its standard gas tariff – including those on a prepayment meter – whether dual fuel customers or gas-only.
But electricity-only customers and those on fixed tariffs, which usually lock you in at a set price and don't change when a supplier increases or decreases price, won't benefit from the price reduction.
The firm is the last of the big six energy firms to announce it is shaving gas prices following political pressure to do so:
- E.on cut gas prices by 3.5% on 13 January (see the E.on cuts gas prices MSE news story for more).
- Npower is cutting gas prices by 5.1% from 16 February (see the Npower to cut gas prices MSE news story).
- Scottish Power is cutting gas prices by 4.8% from 20 February (see the Scottish Power trims standard gas price MSE news story).
- British Gas is cutting gas prices by 5% from 27 February (see the British Gas to cut gas prices MSE news story).
- SSE is cutting gas prices by 4.1% from 30 April (see the SSE the latest firm to cut gas prices MSE news story).
On a big six deal? 'Ditch it now'
Martin Lewis, founder and editor of MoneySavingExpert.com, says: "I doubt EDF customers will exactly be partying on the back of such news. Yet as EDF is the last of the big six energy providers to announce price cuts, the real joy is that this is the perfect time for comparison as you have a true level playing field if you do so.
"However, none of the big six's standard tariffs, which over half the country are on, are even close to wiping the bottom of the cheapest deals.
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"Across the big six, the average standard tariff price is £1,158/year. The cheapest prices on the open market for a one year fix are about £920 and tomorrow the MoneySavingExpert collective switch launches at just £901, in other words nearly £260 cheaper than the big six average even after their price cuts – many of which still have an age before they hit.
"So the simple, clear and powerful message is if you're on a big six deal, you're being ripped off. Ditch it now."
'We will pass further wholesale reductions onto customers'
Vincent de Rivaz, chief executive of EDF Energy, says: "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."