Watchdog slams 'meagre' energy price cut

A cut in energy prices by EDF Energy has been criticised by the official consumer watchdog for being "meagre" and ignoring gas customers.

A cut in energy prices by EDF Energy has been criticised by the official consumer watchdog for being "meagre" and ignoring gas customers.

EDF Energy said it would cut tariffs by up to 12.5 per cent which will affect 2.3 million of its electricity customers, with an average change of 8.8 per cent from March 31.

But Robert Hammond, of Consumer Focus, said: "Any price drop is welcome, but EDF's meagre 8.8 per cent price cut is only good news to their electricity customers and only comes into effect at the end of the winter.

"We're also disappointed that their gas customers have been totally ignored.

"According to an Ofgem probe, three-quarters of the gross profits of the major suppliers and all of their net profits arose from the customers in their former monopoly electricity areas who had not switched.

"This cut appears to be more an attempt by EDF to address this criticism than a true reflection of the dramatic falls in both electricity and gas wholesale prices since July last year."

Energy and climate change minister Mike O'Brien said: "Any price cuts will be a relief for consumers. We've been pressing all the energy companies to pass on wholesale price cuts to their customers as far and as fast as they can.

"We will continue to do so. There is still some way to go."

The move by EDF follows recent price cuts from E.ON, British Gas and Scottish and Southern Energy.

The firm said the price cut applied to standard rate electricity customers in London, the South East, South West, Wales and Scotland.

The reduction follows lower wholesale energy prices, but the company warned that the market was volatile and the outlook for retail prices remained "challenging".

Eva Eisenschimmel, head of brand performance at EDF Energy, said the "announcement confirms our ongoing commitment to providing our customers with more competitive prices during these difficult economic times".

The move also ensures that EDF is in line with Ofgem recommendations calling for regional electricity pricing differentials to be addressed, the company said.

Recent articles

Info Message

Our sites use cookies to support some functionality, and to collect anonymous user data.

Learn more about IET cookies and how to control them

Close