EDF Energy has announced a price increase of 1.4% on standard variable rate electricity tariffs, affecting nearly half of their customers, effective from 7 June 2018.
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Previously, in 2017, the big six supplier raised prices for dual fuel standard variable rate customers by 7.2%.
EDF Energy states the changes will add £16 per year to customers' bills, and the change is to the supplier's standard variable rate tariff's standing charge, not electricity rates.
Dual fuel customers who opt to pay by cash or cheque will also see an increase of £6 per fuel per year.
What should I do about the EDF price change?
All customers with a standard, variable rate plan for electricity from EDF Energy will be impacted by this announcement (about 41% of their current customer base). If this is you, and if you do nothing, your prices will rise by about £16 per year from June — more if you pay by cash or cheque.
Alternately, you can switch energy providers right now to avoid paying more than you need to for your gas and electricity.
If you've never switch energy before, read our step-by-step energy switching guide.
If you are on EDF's standard plan, then you should at the very least switch to their cheapest fixed plan or look to switch to a new supplier.
Standard variable rate plans from energy suppliers are often their most expensive tariff and it is the tariff that most customers are automatically put on when they move into a new home. Many customers never change their tariff and end up facing higher costs than customers who are on fixed rate tariffs.
If you’ve already switched your energy supplier and still want to find ways to save on your bills, you can also follow some of our free tips to save energy at home.
Why did EDF Energy raise their prices in 2018?
The big six supplier stated that while the company aimed to offset rising wholesale energy and policy change costs by cutting their own costs, it became necessary to pass the costs on to electricity customers in the form of increased standing charge costs.
Why did EDF raise their prices in 2017?
EDF blamed the two price rises in 2017 on an increase in wholesale energy costs and imposed costs from government policies.
Some of the government policies have been paid for by customers' bills and include schemes to alleviate fuel poverty and support low carbon power.
Following the announcement of EDF Energy’s second price rise in 2017 a government spokesperson said: "It's another sign the market isn't working".
Ofgem, the industry regulator, has encouraged customers to switch their energy supply to keep energy companies on their toes and ensure the market remains competitive.
Who else raised their prices in 2017?
Along with EDF Energy, all of the big six energy companies raised their prices in 2017.
- SSE's electricity rates increased in March 2017 by 14.9%.
- npower raised its standard tariff electricity prices in March 2017 by 15% and gas prices by 4.8%.
- ScottishPower's dual fuel standard rate tariffs from 2017 increased by 7.8%, consisting of a gas price rise at 4.7% and electricity at 10.8%.
- E.ON increased electricity prices in April 2017 by an average of 13.8%, and gas prices by 3.8%
- British Gas raised electricity prices by 12.5% in September 2017 after stating they would freeze prices until August 2017
If you’re with any of the above suppliers, you should switch your energy now to help you save on your energy bills.
Will EDF Energy raise prices in 2018?
After the first EDF Energy price rise in 2017, not many people would have predicted that there would be another one in the same year. Ultimately, there are no guarantees that there won't be more price rises in 2018.
The energy market is regulated by Ofgem, but energy prices are not. Energy suppliers are free to charge customers as much as they like but are only kept in check because of competition.
EDF Energy could put up their prices tomorrow but they would be concerned about their rivals winning over their customers. There are no certainties, so it's always a good idea to compare the energy market on a regular basis and ensure you're on the cheapest deal possible.
You can stay up to date with the latest news from the energy market here and compare energy deals to find the cheapest rate for you.
You'll often find that suppliers all put up their prices around the same time. This is partly to do with rising wholesale energy market costs and additional compulsory fees imposed by the government, but it is also partly to do with softening the public backlash.
If one energy suppliers puts their prices up, the rest of the major companies will see it as good timing to raise their prices, as they won’t receive as much attention.
Nearly all of the price rises in 2017 occurred in March. British Gas raised their prices in September after announcing early in 2017 that they would freeze prices until August.