Respite for customers as EDF cuts bills by 5pc

The move, which will take effect in February, is expected to spark reductions by rival suppliers.

EDF increased gas tariffs by 15.4 per cent in November but said a sharp fall in the price of wholesale gas prompted the cuts.

Its average dual fuel customer with typical consumption paying by monthly direct debit will now face costs of £1,129 a year.

The move follows speculation over the weekend that British Gas owner Centrica was considering a 10 per cent reduction in households energy bills.

Chief executive Vincent de Rivaz said: “What customers want more than anything else is fair, clear and transparent prices.

“We know they want action rather than words. That is why we are the first major supplier to announce a cut and were the last to increase prices.”

Customer body Consumer Focus called on the remaining five of Britain’s six largest providers – E.ON, RWE npower, Centrica, SSE and Scottish Power – to follow suit.

Adam Scorer, director of policy and external affairs at Consumer Focus, said: “This is an overdue but nonetheless welcome move. The cut is not enormous given the scale of increases last year but it creates some important momentum in the market.”

“It is now up to the rest of the ‘big six’ to compete and consumers will expect to see prices come down across the board.

He added: “Wholesale prices are at their lowest point in almost a year and the trend is down. Underlying market fundamentals – especially wholesale prices – should determine the price consumers pay. These fundamentals have clearly changed in the energy market and retailers should respond.”

The move comes as an annual survey by Which? showed EDF finished second bottom in a table of the biggest six energy suppliers. Only 43 per cent of its customers were satisfied with its service.