EDF Energy has announced price rises to its standard variable electricity tariff. The rise will mean that electricity prices will increase by 2.7%, days after British Gas raised prices for 4.1 million of its customers.
Béatrice Bigois, EDF Energy managing director of customers, said: “We know that price rises are not welcome and we have worked to offset rising energy and policy charges by cutting our own costs. We will be writing to affected customers this month to encourage them to choose a fixed-price tariff or to pay by direct debit to save on their bills. The company said that the price rise “reflected the increase in some of the fixed costs associated with supplying electricity”.
Responding to EDF’s announcement Victoria MacGregor, Director of Energy at Citizens Advice, said “EDF must be clearer in explaining why this price increase is necessary. Like British Gas earlier this week, EDF cites Ofgem’s reasoning for upping the prepayment meter cap – wholesale and policy cost increases – to explain its own rise. But this doesn’t fully explain why the supplier needs to increase its standard variable tariff, or why the tariff remains higher than the prepayment meter cap.”
“Customers who pay by direct debit, cash or cheque are cheaper to serve than prepayment customers, so further explanation for this price hike is needed. This latest rise shows why the Government should implement its total price cap as soon as possible, to protect consumers from poor value default tariffs.”
Peter Earl, Head of Energy, comparethemarket.com, said “As the noise around British Gas price rises continue, EDF quietly follows suit. You’d be forgiven for thinking that the Big Six were addicted to hiking prices, even to the steady and significant detriment of their reputation. This hike – yet another in a string of them – will affect an estimated 1.3 million customers across the UK. When you bear in mind that EDF raised their prices twice in 2017 by a substantial 9%, this move beggars belief. As the energy market seems intent on squeezing every last drop out of household finances, the best way for customers to combat these relentless price hikes is to shop around for the best deal and ensuring they’re not on an expensive Standard Variable Tariff. Currently, households can save over £200 on their energy bills just by switching – which can go a long way at a time when household bills continue to rise.”