Energy giant EDF is to raise gas prices by 15.4 per cent and electricity by 4.5 per cent, it announced this morning.
The price hike will see annual bills rise, on average, by £116 a year for dual fuel customers paying on receipt of bills – a move that will affect 3.2 million customers.
The increases come into effect from 10 November.
EDF is the last of the big six firms who dominate the UK energy market to announce price rises in the past couple of months.
Scottish Power, British Gas, Scottish and Southern Energy, E.ON and nPower have all announced price hikes in recent weeks.
The cost of an average annual bill, paying on receipt of bill, across the big six energy firms has increased by £160 from £1,132 to £1,292, following the price rises announced since the start of summer*.
Rising wholesale prices blamed for hikes
The energy firm blamed an increase in the cost of wholesale gas – the amount it pays for energy – for the latest customer price hikes.
Vincent de Rivaz, chief executive of EDF Energy said: “We have absorbed rising wholesale energy, network and other costs as long as possible but must reluctantly now pass some of these through to consumers.”
Gas and electricity firms have come in for criticism for raising prices at a time when wholesale prices are lower than than their 2008 peak.
Last month, watchdog Consumer Focus called for a reform of the energy market to include a competition review of the structure of the energy market so consumers can know whether their bills are fair.
Announcing their price rise, EDF’s chief executive said he recognised “there remains a widespread lack of understanding and suspicion of the industry as a whole, among the public, customers in general, politicians, regulators and others.”
Mr de Rivaz added: “It is important this perception is addressed. The energy challenges Britain faces are far too important and can only be addressed in a world with trust, open dialogue and mutual understanding.
“If a Competition Commission inquiry is necessary to build this trust, then it is a step that should be taken. We would welcome the opportunity to explore all the issues fully and openly. As a fair company, we have nothing to hide.”
Consumers can make informed decision
Despite putting their prices up, EDF has yet to withdraw its best fixed tariff, Fixed S@ver 2, which is protected from the increase.
Lisa Greenfield, energy analyst at Confused.com said: “Now that all the suppliers have shown their cards, consumers are now in a position to make an informed decision on switching their gas and electricity without fear that their chosen tariff could go up in a few months time.
“As always, our advice is to opt for a dual fuel tariff, pay by direct debit and manage your account online as you’ll pay less for your energy this way.
“If you’re concerned about future rises, a fixed or capped tariff will offer price security although you will be paying over the odds if prices fall.”
*Based on a medium user. Energy regulator Ofgem defines a medium user as consuming 16,500 units of gas and 3,300 units of electricity a year.
