EDF Energy hits customers with price hikes

Gas hob

EDF Energy customers will see their energy bills rise by nearly £100 a year after the company announced gas and electricity price hikes.

The firm, which has over five million customers and is the 5th largest energy provider in the UK, says its decision will add an extra £1.92 a week on the average customers bill.

From Friday EDF’s electricity customers will see their bills rise by 7.9%, while gas customers face a 12.9% hike in their bills. According to energy price comparison website theenergyshop.com, the hikes will make EDF the most expensive energy supplier for gas only customers.

The move follows npower increasing its prices for electricity and gas customers. British Gas has also warned it may have to increase prices in the future.

According to theenergyshop.com, wholesale electricity prices are at an all time high while wholesale gas prices are likely to remain at 15.5% more expensive throughout this year than in 2007.

The energy industry has been blighted recently with accusations of price fixing. However, the regulator Ofgem has refused to refer the issue to the competition commission.

Joe Malinowski, found of theenergyshop.com, says: “Ofgem believes that there is a range of pricing in the market and that there is also a high level of consumer switching between providers. We would agree with this – the reason prices tend to increase around the same time is down to providers reviewing their strategies at set points throughout the year.”

EDF says the rises reflect the wholesale cost of energy, its increasingly distribution costs and the expense of its environmental obligations.

Eva Eisenschimmel, of EDF Energy, says: “We regret any decision to raise our prices. Despite soaring wholesale energy prices, higher distribution costs and increased environmental obligations, we have been able to substantially limit the impact on our customers.”

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