EDF Energy is to cut its electricity prices by an average of 8.8 per cent – good news for its 2.3 million customers.

The energy provider announced the cut will see a typical dual fuel customer’s bills reduced by £21 per year.

Eva Eisenschimmel, at EDF Energy, claimed the company was able to ensure the lowest overall dual fuel increases last year with customers seeing savings of up to £75 compared to British Gas customers.

“Today’s announcement confirms our ongoing commitment to providing our customers with more competitive prices during these difficult economic times,” she said.

EDF is the fourth major firm to cut its prices over the last month.

E.ON last week cut its electricity prices by nine per cent from March 31st – after British Gas said its gas prices will fall by ten per cent from February 19th, and Scottish & Southern Energy (SSE) stated its electricity and gas prices would fall by nine per cent and four per cent respectively from March 30th.

Uswitch.com estimates the average household bill for a dual fuel EDF Energy customer will fall from £1,211 to £1,171– £264 or 29 per cent higher than its average bill in January 2008.

EDF Energy increased prices by £304 or 33.5 per cent last year.

Will Marples, energy expert at uSwitch, said: “With today’s move, energy price cuts are averaging out at £60 or 4.5 per cent, far lower than struggling households were expecting.

“There is still a slim hope of a second wave of cuts this year, but consumers should certainly not bank on it.”

He went on to advise customers to switch to paying by direct debit, taking a dual fuel deal and using an online tariff to reduce bills.