EDF Energy has announced it will cut its gas prices by 5% – becoming the first major supplier in 2012 to announce it will pass on falling wholesale prices to its customers.

The company was the last of the major suppliers to raise its energy prices in the autumn.

It’s the latest step in EDF Energy’s strong track record of offering its customers fair and competitive prices and, in particular, to provide what help it can during winter. EDF Energy believes fair tariffs are vital to address the issue of consumer trust.

Vincent de Rivaz, Chief Executive of EDF Energy, 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.

"Today’s price cut is further evidence of our commitment to be fairer, simpler and more transparent. This is vital for consumer trust. We are working on a range of further steps as a responsible energy company to continue to build trust."

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The lower gas price announced today will come into effect on February 7. The move will help customers over the winter when they use the most gas.

Since EDF Energy’s last price change on 10 November 2011, the one-year wholesale gas price has decreased by 9.2%. Industry analysis shows wholesale prices make up about half of the final domestic gas bill.

Customers with typical consumption switching to take advantage of EDF Energy’s new standard dual fuel prices and paying by monthly direct debit could save up to £89 a year compared to our largest competitor’s current equivalent prices, based on a national average of regional standard prices.

For the second winter running EDF Energy was already the cheapest major supplier for typical dual fuel and electricity only customers based on a national average of regional standard prices. Its new standard dual fuel prices will be cheaper at typical use than all major competitors’ current prices – for all payment types and in all regions.

EDF Energy’s standard electricity prices continue to be the cheapest among the major suppliers based on a national average of regional prices and will stay at the same level. Last autumn the company limited its electricity price rise to inflation only, compared with larger increases by other suppliers.

Martin Lawrence, Managing Director of Energy Sourcing and Customer Supply at EDF Energy, said: "Wherever people live and however they pay, our new standard dual fuel prices will be cheaper at typical use than those currently offered by all our major competitors.

"We know customers are finding it difficult, particularly during winter. So I am pleased we have been able to make this announcement now and help our customers at a time they use more gas, just as we did last winter when we were the only major energy supplier to freeze prices.'

(GK)