EDF customers benefit least from "token" price cuts

With wholesale energy prices plummeting, all households turned their attention to the major energy suppliers in anticipation of a much-needed reduction in their energy bills.

What followed can only be described as the dampest of squibs, with an average reduction of less than 4% across the Big Six (which boast more than 90% market share between them).

But, as the table below illustrates, it is EDF customers who will be left feeling most underwhelmed as the company unveiled average savings of 75p a month to its standard variable tariff customers...

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Delays in passing price cuts on

E.On was the second most miserly, with cuts of £2 a month - but at least it passed these on with immediate effect. SSE customers will have to wait until end of April to benefit from lower prices, when the cold winter months are a distant memory.

With the biggest reduction coming in at just 5.1%, it's perhaps unsurprising the giants stand accused of profiteering.

"Energy firms are engaging in a phoney price war," said Gillian Guy, chief executive of Citizens Advice.

"Token energy price cuts to standard tariffs do not reflect the big savings that energy firms can pass on to households."

Those accusations appeared to gain credence yesterday when Ovo Energy, one of the smaller energy companies operating in the UK, unveiled a 10.4% price cut – more than double what the big boys are offering.

"Energy companies can't hide; this shows what's possible when it comes to cutting bills," said Ed Davey, Energy and Climate Change Secretary.

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So what should you do?

The latest underwhelming round of price cuts doesn't really teach us anything we didn't already know. If you want to achieve any meaningful reduction in your bills, then you need to shop around - making sure you include the smaller suppliers in your search.

And if you're still languishing on a standard variable tariff, for goodness sake move!

"While recent price cuts are a step in the right direction, many customers could be better off to the tune of up to £250 by moving from a variable rate to a fixed rate deal," said Dermot Nolan, chief executive of Ofgem.

What do you think? Are you a customer of one of the Big Six? How do you feel about the latest cuts? Share your thoughts in the comments section below