EDF Energy to cut UK gas prices, but less than rivals

By Sarah McFarlane and Karolin Schaps LONDON (Reuters) - EDF Energy will reduce British household gas prices by 1.3 percent on Feb. 11, making the smallest cut to consumer bills among the country's six biggest suppliers who have all now announced price reductions based on lower wholesale costs. Wholesale crude and gas prices in Europe have tumbled due to a global supply glut, reducing some of the energy purchase costs utilities incur. Britain's Chancellor George Osborne, gearing up for a May national election, urged energy companies earlier this month to pass on savings to customers, saying action could be taken if they failed to do so. EDF Energy's rivals have cut gas prices between 3.5 and 5.1 percent, with RWE npower implementing the steepest reduction. EDF Energy defended its move, saying it had bought most of its gas well in advance at higher prices and its tariffs had been lower than those offered by competitors. "If wholesale gas prices create cost reductions which allow further price cuts, these will be passed to customers as soon as possible," said Vincent de Rivaz, chief executive. Energy Secretary Ed Davey said: "Energy companies need to up their game if they want their customers to stick around." Britain's largest six energy suppliers have been under pressure to reduce prices after years of climbing bills and the sector is facing a competition probe that could lead to the break up of some of the biggest companies. Smaller suppliers have been gaining customers as users dissatisfied with expensive bills and poor customer services search for alternative options. (Editing by Susan Thomas and David Holmes)