MSE News: EDF Energy cuts gas bills by 5%

Bark01

Pincher wrote: »

The reduction publicity cow is milked twice in the energy industry.

Electricity wholesale prices should also be down, as the energy market is correlated. I therefore expect another 5% reduction announcement for electricity. And then both are reduced by 5% on 7th February. Do they think we are that dumb, that we will think 5% plus 5% is 10%?

On the way up, both are annouced together.

Agreed, but in EDF's case their electricity increase last year was only 1/3 of the increase they applied to gas. So all things being equal (as you suggest) they could have combined the gas decrease with an electricity increase and things would be equal.

The truth is that hedging strategies are different between fuels and EDF Energy has access to relative cheap, stable UK based nuclear power so isn't as affected by wholesale electricity fluctuations as other suppliers.

ach5

I feel very irritated by this news.

Towards the end of last Summer, I was spooked by Martin Lewis' constant banging on about price rises and the advice to consider fixing.

So, I fixed for 2 years with EDF, and now this.

I know Martin Lewis' advice comes with the usual proviso of losing out with a fix if prices go down, but the way it was framed and all the fuss he made on here and in the media made me go and fix - something I have never, ever done.

I feel like there has been a set up by the energy companies to get people to fix and then the prices fall

macman

But fixing was never presented as the 'cheapest ' option. It was simply a way of buying insurance against possible future rises at a time of volatile pricing. And like all insurance, you pay a premium for it.
Furthermore, if you fixed at the right price (probably best off on FS v2) then a small gas cut by EDF will still leave you better off on a fix.

brewerdave

I fixed last June til March 2014 - checked my gas price vs new EDF standard price -In my region I'm still over 14% better off! on unit price!!