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More energy price cuts
By Hannah Ricci
Energy providers are scrambling to win back customers with yet more price cuts following the excessive hikes last year. Monday 30 April saw EDF Energy (EDF) and Scottish Power (IBE) cave in to mounting industry pressure in light of the British Gas price slash.
The price cuts however are pretty meagre compared to tumbling wholesale gas and electricity prices and will not benefit all customers. EDF Energy for example, has cut its gas prices by 10.2% from 15 June 2007, but electricity prices will remain the same.
"EDF Energy's price cut is just about the least it needed to do in response to moves from other suppliers. It will edge EDF Energy toward the better value end of the pack," said Adam Scorer, director of campaigns at watchdog, Energywatch. "But it is a further sign that this is no price war for consumers, just a jockeying for position by companies looking to hang on to what they've got."
Cuts for direct debit customers
Scottish Power followed by cutting its prices by up to 16.5% for gas and up to 6% for electricity for direct debit customers, but those who pay by cash or cheque will see only a 5% cut and nothing for electricity. British Gas announced its second mediocre price cut of 2007 last week, shaving 6% off electricity and 3% off gas.
"The story certainly isn't over but the good news is that prices are falling and I expect more price cuts before the year is out," says Geoff Slaughter, product manager at price comparison site, uSwitch.com. "Whether customers have never switched before or did so amid the price hikes last year, they need to review their current tariff because chances are they can get a better deal."
Scottish and Southern Energy (SSE) currently offer the lowest cost duel fuel tariff - combining both gas and electricity - averaging £824 for direct debit customers and £875 for those who pay by cash or cheque.
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