EDF moves to cut gas price by 5 per cent

EDF Energy yesterday piled pressure on its rivals by announcing a five per cent cut to its gas prices.

The company said the reduction, which comes into effect on 7 February, had been made possible by the lower wholesale cost of gas in the mild winter.

But yesterday none of the other companies in the so-called “Big Six”, which includes British Gas, would commit to following suit.

The move by EDF will benefit 1.4m customers, though electricity prices will not be lowered.

The cut goes some way to reversing EDF’s bill hike of more than 15 per cent in November, which was also made in response to wholesale gas prices.

Chief executive of EDF Energy Vincent de Rivaz said: “What customers want more than anything else is fair, clear and transparent prices. We know they want action rather than words.

“That is why we are the first major supplier to announce a cut and were the last to increase prices.”

Energy secretary Chris Huhne has called on the rest of the major suppliers to follow suit and cut their prices.

However, British Gas, Scottish Power, E.on, and Npower said there were no reductions in the pipeline.

Scottish and Southern Energy, one of the biggest FTSE 100 fallers yesterday, also failed to commit to a cut.

Some smaller suppliers have made price cuts on some tariffs or cancelled price rises in recent weeks.