Gas and electricity retail prices will be raised by 12.9% and 7.9% respectively, in a move that parallels npower’s rate rise of a fortnight ago.
The average annual cost of a dual fuel account is set to rise by approximately £100 to just over £1000. This new rate has been implemented as of 15th January and will affect 5.5 million EDF customers nationwide.
Chris Eagle, Commercial Manager at EnergyChoices, is anticipating a similar move from British Gas:
‘The EDF price hikes come as little surprise, and it’s inevitable that British Gas will follow soon. Although steep, EDF have managed to keep their price increase within the parameters of those made by npower. It may be worthwhile to see how the market shakes out before switching, but most suppliers’ online energy tariffs still represent the best possible deal for your energy’.
The EDF action comes after npower (17% for gas and 12% for electricity) announced increases in the last ten days. EDF blames soaring wholesale prices for this move, with spokeswoman Eva Eisenschimmel claiming that wholesale gas prices have ‘shot up by 117% since last February’.
Energy regulator Ofgem has said that there was no evidence that any of the recent gas and electricity price hikes are down to collusion between suppliers. Ofgem chief executive Alistair Buchanan, who together with Chairman Sir John Mogg met Chancellor Alistair Darling on Tuesday to discuss the recent increases, said he had found no evidence of any anti-competitive behaviour between the firms. Mr. Buchanan said:
‘We look even closer during periods when prices are rising, but have uncovered no evidence of any anti-competitive behaviour. We see companies gaining and losing significant market share, record switching levels and innovative deals’.
