EDF Energy to cut gas but raise electricity prices

EDF Energy said on Friday that it will cut its gas prices from January, but electricity prices will rise from March.

The company is cutting its variable gas prices by 5.2% from 6 January, but lifting electricity prices by 8.4% from March. EDF said that while electricity costs have been rising for some time, gas prices are not facing the same pressures and so “it is right that prices reflect this”.

The combined changes will result in a 1.2% hike in EDF’s new standard dual fuel direct debit price to £1,082.

For customers on standard variable tariffs this will be the first increase in more than three years.

The energy group said its latest pricing action will also benefit around 200,000 prepayment customers, as the 12.9% reduction in their gas tariff from 6 January ahead of the Competition and Markets Authority price cap will provide an additional three months of savings before the official cap is introduced.

Beatrice Bigois, managing director of Customers at EDF, said: “We want to help loyal customers by cutting gas prices ahead of the coldest winter months, and delaying electricity increases until later in the year. This will save customers money this winter. Gas prepayment customers on our variable tariffs will also benefit three months ahead of the price cap being introduced following the Competition and Markets Authority investigation.

“Many industry commentators have said that prices charged by energy suppliers will rise after the winter. We are being open about the fact our electricity prices will go up after our price freeze. But we also know it is right to pass on to loyal customers the fall in gas costs that energy suppliers have seen over recent months.

“With energy prices rising, we will continue to make it easy for customers to move onto EDF Energy’s fixed tariffs, where they can save money and get peace of mind. Letting customers know now provides them with more time to lock in a cheaper fixed deal.”