EDF Energy is the latest Big Six provider to announce price hikes, which will affect 1.3 million customers.
The move follows hot on the heels of British Gas, which announced earlier this week that it is to up prices by 5.5% for over four million customers.
However, unlike British Gas, there are two components to EDF’s increases. From 7 June, EDF will:
- Increase its electricity prices by 2.7% for standard variable customers.
This means a 2.7% increase for electricity-only customers or a 1.4% (or £16) increase for dual fuel users, taking the average annual dual fuel bill to £1,158.
- Increase the annual charges for users who pay by cash or cheque.
This means standard variable and future fixed rate tariff customers will pay £6 more each year per fuel. If you factor in the electricity price rise on top, this will increase the average annual dual fuel tariff by 2.3% (£28), taking prices to £1,248. For electricity-only customers who pay by cash or cheque, EDF has confirmed to Moneywise that they will see bills rise by 3.5%.
Customers already on a fixed tariff, those who have a prepayment meter, and gas-only users who pay by direct debit are unaffected by the changes. EDF says this accounts for 59% of its users.
EDF blames the hike on rising energy, government policy and smart meter installation costs. Its managing director of customers, Béatrice Bigois, comments: “We know that price rises are not welcome and we have worked to offset rising energy and policy charges by cutting our own costs.
“However, these rising costs mean we will be increasing our standing charge for electricity on the 7 June.”
The Big Six provider last increased prices by 7.2% in June 2017.
'Households should switch away from rip-off tariffs'
Claire Osborne, energy expert at comparison website uSwitch.com, says: “Now that two of Britain's biggest suppliers have raised prices, we are starting to see the uncomfortably familiar pattern where one company follows another. The question is whether it will be a trickle or a stampede.
"Either way, households should join the 5.5 million energy customers who switched away from rip off tariffs last year and show the suppliers who really holds the power. There are savings of up to £491 on offer for only 10 minutes online and consumers can fix their tariff to protect against future price rises.”