EDF is first big supplier to drop gas prices

EDF Energy is to cut gas prices by 5 per cent from 7 February, the first major energy supplier to respond to a 10 per cent drop in underlying wholesale costs due to mild weather and declining economic activity.

So far, only two smaller suppliers, Co-operative Energy and Ovo Energy, have cut prices.

The "Big Six" energy suppliers increased tariffs last autumn, with EDF raising gas prices by 15.4 per cent in November, as wholesale prices jumped, helping to push inflation to a three-year high. "Centrica and SSE will have to follow suit (because) gas prices have fallen considerably," Dominic Nash, at Liberum Capital, said.