Variable gas prices will be cut by 5.2 per cent from January 2017 and prepayment meter customers will see a 12.9 per cent gas price cut. Variable electricity prices will be frozen until March 2017 when EDF will hike the price by 8.4 per cent.
Combined, the price changes equal an increase of 1.2 per cent per year for EDF’s new standard dual fuel direct debit.
The big six supplier says the reason for the rise is due to a number of non-wholesale electricity costs rising substantially. 1.5 million EDF Energy customers will not be affected by these price changes as 44 per cent are on fixed deals.
EDF Energy’s managing director Beatrice Bigois 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.”
The rise follows increases from the majority of the big six suppliers and a number of smaller suppliers including a 30 per cent rise from GB Energy Supply which subsequently went bust at the end of October.