EDF Energy cuts electricity bills

EDF Energy cuts electricity bills 
 
EDF is the second energy provider this week to cut electricity, but not gas bills
EDF Energy has announced it is cutting bills by an average of 8.8% for most of its electricity customers.

Gas tariffs will remain unchanged, EDF Energy said, arguing its prices were still competitive.

The reduction in electricity bills will come into effect on 31 March and will affect 2.3 million of the firm's customers.

E.On cut its electricity bills by 9% on average on Thursday. It also decided to keep gas prices unchanged.

"These reductions will apply in London, South East, South West, Wales and Scotland, benefiting the vast majority of our standard rate customers across the country," EDF said in a statement.

"In other regions, EDF Energy is already offering some of the lowest tariffs on the market".

'Volatile wholesale prices'

Apart from EDF and E.On, competitors British Gas and Scottish & Southern Energy have also announced price cuts.

British Gas is to cut its gas prices by 10%, effective from 19 February while Scottish & Southern will cut the price of electricity by 9% and gas by 4% from 30 March.

The cost of wholesale gas is linked to the price of oil, which has fallen significantly from the peak it reached in summer 2008.

"Although wholesale prices have fallen recently, the market remains volatile. As a result, the outlook for retail prices is still challenging," EDF said.

"Forward annual wholesale prices for electricity and gas remain at relatively high levels."

11th March, 2010

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