Energy News

EDF raises energy prices

Thursday 15 September, 2011

By Martin Fagan - editorial@consumerchoices.co.uk

Last of the “big six” to increase prices puts gas up by 15.4% and electricity up by 4.5%.

Following weeks of speculation, EDF Energy has finally announced that it will increase its prices for gas and electricity.

From 10 November, EDF will increase gas by 15.4% and electricity by 4.5%.

It said it had absorbed the rising cost of wholesale energy for as long as possible and now it was “reluctantly” passing those rising costs on to customers.

This makes EDF the last of the “big six” energy companies to declare increases following similar announcements over the past two months from Scottish Power, British Gas, Scottish and Southern Energy (SSE), E.ON and npower.

EDF claimed that its price increases were the lowest of any major supplier. The average increase of the other five was 17.8% for gas and 11.1% for electricity. However, this is the second round of price increases by all of the “big six” in 2011.

Because of these seemingly orchestrated prices rises, energy suppliers are being investigated by regulator Ofgem after repeated accusations that the market is working in an anti-competitive way.

In response to this accusation, the announcement from EDF also included a statement from Vincent de Rivaz, chief executive of the firm, that the energy industry needs to regain the trust of consumers and, if necessary, this must be rebuilt through a Competition Commission inquiry.

“The fact that EDF Energy has made smaller and later hikes than other suppliers is welcome, but it won't soften the blow on those who are struggling on tight household budgets,” said Mike O'Connor, chief executive of energy watchdog, Consumer Focus.

“EDF Energy's announcement will take the average energy bill to almost £1,300. As we head into the colder months, this means more consumers making tough decisions and millions of people cutting back on other essentials if they want to keep warm.”

Earlier this month, Consumer Focus said that EDF was the only energy company which had seen an increase in complaints in the second quarter of 2011. In August the energy giant also admitted overcharging 100,000 customers because of a fault on its automated telephone meter reading system.