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EDF announces biggest energy price rise yet

Rebecca Rutt
by Lovemoney Staff Rebecca Rutt on 26 October 2012  |  Comments 8 comments

EDF becomes the fifth of the main energy providers to announce a price increase.

EDF announces biggest energy price rise yet

EDF will push up prices by 10.8% from 7 December, making it the fifth of the big six providers to announce a rise.

Gas and electricity customers will see their average dual fuel bills rise by £2.35 a week, or £122 over a year.

This is the largest rise we’ve seen so far this year and the company has blamed it on the rising costs in the wholesale market as well as having to pay a higher amount for its gas and electricity networks.

Price rises across the market

The news today doesn’t come as a great shock as four other providers have all announced hikes already, but it is the largest rise we've seen yet.

First to move was Scottish and Southern Energy (SSE) back in August, while British Gas, npower and Scottish Power all followed in a matter of weeks.

The only remaining provider to announce a hike is E.On and it’s expected this will happen imminently.

Why are prices rising?

EDF has followed the same line as the other providers in blaming rising costs.  It also said the cost of paying out for "mandatory energy efficiency and social schemes" has forced it to raise prices.

Martin Lawrence, spokesperson for EDF, said: “We know that customers will not welcome this news and we do not want to see prices going up.”

EDF says that, on average, its prices still remain cheaper than the other leading providers but, in a time when incomes are being squeezed from almost every angle, it’s unlikely that will be much consolation for its customers.

Ironically, this announcement comes at the end of Big Energy Saving Week, an initiative launched by Citizens Advice to help people save on their energy bills.

Where can you get the cheapest deal?

Our comparison tables have a full view of the market but here are the cheapest remaining fixed-rate deals. After today's news it's expected more customers will move to a fixed deal to avoid further hikes.

However, before switching make sure you're eligible to do so and you won't be faced with a leaving penalty and always compare the prices across the market to make sure you're getting the best deal.

The cheapest fixed-rate deals

Supplier

Tariff

Average Cost

Average Saving*

Fixed until

Cancellation Penalties

OVO Energy

New Energy Fixed

£1,139

£253

Prices fixed for 12 months

£30 per fuel until end of fix

ScottishPower

Online Fixed Price Energy April 2014

£1,140

£252

Fixed until 31 March 2014

None

e.on

Age UK 1 Year Fix

£1,148

£244

Prices fixed for 12 months
(only available to over 60s)

None

e.on

1 Year Fix

£1,158

£234

Prices fixed for 12 months

£10 until end of fix

OVO Energy

Green Energy Fixed

£1,195

£197

Prices fixed for 12 months

£30 per fuel until end of fix

EDF

Blue +Price Promise March 2015

£1,251

£141

Fixed until 31 March 2015

£35 per fuel if you leave before 31st March 2013; £15 per fuel before 31st March 2014. No cancellation penalties if you leave after 31st March 2014 or if you move home any time

*based on average dual fuel tariff costing £1,392. All calculations are for an average usage dual fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 16,500 kWh pa of gas and 3,300 kWh pa of electricity (source: energyhelpline)

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Comments (8)

  • r
    Love rating 67
    r said

    A lot of the energy supply problems can be attributed to lack of government initiative - both this government and the Blair/Brown period. It was known many years ago that several of our power stations are nearing the end of their life - they now only have three years to go - yet no investment initiative has been taken to replace them nor to provide storage for gas so that we could buy it when it was cheap. I can see electricity prices escalating again in 2015 as demand exceeds supply.

    As a country, we have to realise that the only "endless" source of energy in nuclear, probably supported by wind and wave. It is a safe form of energy when produced from modern power stations. People have been mis-led by mishaps which were the result of some idiotic decisions to allow them to operate past ther "sell-by" date (Russia) or to build them on geographic fault lines (Japan).

    @Mike10613:

    My experience of the railways is that the service IS better because we have more comfortable, newer and cleaner trains than BR ever offered us. Telecoms are cheaper than the Post Office (then BT) ever was - BT is still the most expensive and, I think, least co-operative and I shudder to think what the costs would be if they had a monopoly now. I did disagree with the sale of council houses - they were being used by people who could well afford their own house or to rent privately and should have been reserved for the British needy.

    I think a lot of your rhetoric is based on the old "left" and "right" politics without considering the actual needs of the population of this country. It must be better for the tax-payer if the private sector risks its own money in preference to endless demands for more tax. We have already seen in the last 20-30 years that governments cannot run businesses and nor should they. They should set the targets and the environment that we all want and then ensure that the private sector are MADE to keep to their contracts.

    r.

    Report on 27 October 2012  |  Love thisLove  0 loves
  • jennysue19
    Love rating 5
    jennysue19 said

    EDF are telling porkies. I just received my letter telling me what my increases will be.

    My electricity standing charge rises by a whopping 131% from 3.01p per day to 6.96 per day.

    I worked out overall what my increase would be and it comes to over 11% It's easy for me to work out as I have pre-payment meters and I know exactly what goes in.

    I just happened to see E-on in my local shopping centre today and after a quick talk with them, they have offered me a better price on electricity. Unfortunately I cannot transfer the debt on my gas meter (caused by an ex. who left without telling me he hadn't been paying the DD for months!) but they say that after a few months, they are likely to relax the rule about how much I can transfer. By then I will be able to see if they have increased prices. They agreed not to up rates in 2012, but of course could do so on 1st January, so I will have to wait and see.

    EDF have always raised prices by as much or usually more than the wholesale price change and have NEVER tracked it when it went down, only a partial decrease so what I was paying per unit versus what it was 2 or 3 years ago is much higher.

    The Government have to step in now and ensure that energy costs, which fall hardest on the most vulnerable in society pro-rata their overall income, are fair and transparently clear for consumers. Stop dilly-dallying Mr Cameron and act now before the winter hits!

    Report on 01 November 2012  |  Love thisLove  0 loves

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