EDF cuts electricity bills by 8.8% for some customers

EDF Energy is cutting some of its customer's electricity bills by an average of 8.8%. Gas tariffs will remain unchanged, EDF Energy said, arguing its prices were still competitive.

The reduction in electricity bills will only come into effect on 31 March after the end of the winter, and will affect 2.3 million of the firm's 5.5 million customers.

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

The cost of wholesale gas is linked to the price of oil, and has halved since the summer. Unfortunately, however, energy prices are only coming down slowly and by nowhere near as much as they went up by in 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."