CONSUMER groups have called on energy companies to cut their prices after EDF Energy became the first of the big six suppliers to reduce its gas bills.

EDF Energy increased gas tariffs by 15.4% in November but said wholesale costs had fallen by 9% since then, prompting a cut in gas bills of 5% from February 7.

Campaigners said that although the reduction was to be welcomed, the amount was less than expected and did not fully cancel out the prolonged period of price rises since the last round of tariff cuts in spring 2010. Energy bills remain substantially higher than they were just over a year ago, they said.

However, the move is still expected to put pressure on rival suppliers to introduce their own reductions.

Trisha McAuley, deputy director at Consumer Focus Scotland, said: "This is an overdue but nonetheless welcome move.

"EDF Energy is the first of the major suppliers to reduce prices and the others will need to respond.

"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 in Scotland will expect to see prices come down across the board.

"Wholesale prices are at their lowest point in almost a year and the trend is down. Companies argue they follow the global commodity market so it's important all suppliers cut their prices now to help regain consumer trust."

Smaller suppliers such as Co-op Energy and Ovo Energy have already announced price drops this year. Co-operative Energy said it would reduce its gas and electricity charges for most customers by an average 3% from February 1, while Ovo Energy reduced its dual-fuel fixed-tariff prices by 5% for new customers and those renewing their contracts.

Ann Robinson, director of consumer policy at uSwitch.com, said average bills had risen by one-fifth – £224 – in the last 18 months and the cut introduced by EDF Energy would not cancel out the most recent price hikes.

She added: "Pressure to cut prices has been mounting and now one of Britain's biggest energy suppliers has let the cork out of the bottle.

"It's good news for consumers, but look through the fizz and the bubbles and we're left with the cold reality that prices are still substantially higher than they were just over a year ago.

"Hopefully, this move will put more pressure on the rest of the big six to follow suit and cut their prices too."

The move comes on the day that an annual energy company satisfaction survey carried out by Which? showed EDF finished second bottom in a table of the biggest six energy suppliers.

Only 43% of its customers said they were satisfied with the company's service or likely to recommend it to others. The surge in complaints follows the introduction of a new billing system.

EDF, which was the last of the major suppliers to raise prices in the autumn, said fair tariffs were vital to "address the issue of consumer trust".

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."

The industry will be under pressure from regulator Ofgem and consumer groups over the coming months to show household bills reflect current wholesale costs in the same way they did when prices were rising.

In December, Ofgem said the average profit generated per customer by the industry stood at £105, having peaked at £125 in October following a round of price hikes.

Energy Secretary Chris Huhne said: "Some big energy suppliers were quick to pass on rising costs last year, and it is only right they should now pass on cost reductions to hard-pressed householders as quickly as possible. I urge the remaining five large energy suppliers to follow suit."