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EDF Energy cut domestic prices (yawn)

EDF EnergyAnd then there was six.

EDF Energy have completed the set announcing a moderate fall in domestic energy prices of 1.3%.

That in itself, though predictable in its timing, has a surprise in the relatively low fall compared to the rest of the Big 6 who announced cuts of 3.5% to 5.0%.

It’s also interesting that as the gas price has bounced, it is 1.5% up in the last two days, that the Big 6 have completed their round of price cuts.

But then that perhaps puts some credence into the Big 6 claims that it isn’t the current wholesale market price but the hedging of their positions that defines the price they can provide.

Happily in the business energy market this impact is more muted. Unfortunately with the real time reaction to the rise in the current wholesale market that is a feature of the business energy market, prices are already starting to rise.

Already today we have seen a major gas supplier put UP their prices by 0.5% in reaction to the market movements.

Those businesses seduced by the headlines of the newspapers and the allegedly falling market in energy are in for a rude awakening when they finally enter the contract, in the forlorn hope for future price falls the reality is rises!

The old adage “don’t believe what you read in the papers” has never, ever been more appropriate