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EDF to raise gas and electricity prices by 3.9% – Updated

The French energy supplier has announced a price hike which will come in to effect in January next year

EDF has announced a gas and electricity price rise of 3.9%

EDF has announced a gas and electricity price rise of 3.9%

EDF is the fifth of the big six energy companies to announce a winter price rise. Previously, British Gas, npower, ScottishPower and SSE, all announced gas and electricity price rises of 9.1% on average.

EDF’s price hike will be implemented as of the 3 January 2014.

Breaking down the increase

Contrary to its competitors, EDF did not blame the rising cost of wholesale energy for the increase. In fact, the supplier stated that its buying strategy meant these costs had been “reduced to almost zero.”

Instead EDF singled out rising distribution costs, smart meter installations, renewable obligations and other costs, such as VAT increases, the Warm Home Discount and Feed in Tariff.

Average household energy bills

Supplier January 2004 Current bill size New bill size*
British Gas £543 £1,340 £1,471
EDF Energy £504 £1,332 £1,384
E.ON £516 £1,370 £1,370
npower £521 £1,352 £1,491
ScottishPower £524 £1,368 £1,480
SSE £525 £1,354 £1,460
Average £522 £1,353 £1,443

Source: uSwitch

Based on a medium user consuming 3,300 kWh of electricity and 16,500 kWh of gas on a standard dual fuel tariff, paying quarterly by cash and cheque, with bill sizes averaged across all regions. *This doesn’t factor in any potential reduction as a result of a future Government announcement regarding levies on energy bills.

EDF should be applauded for ‘factoring in the potential reduction on green levies’

Tom Lyon, energy expert at uSwitch, said: “Any winter price rise is a blow to consumers as it makes the struggle to afford to stay warm that little bit harder. However, EDF Energy is to be applauded for the stance it is taking by factoring in the potential reduction on green levies into its calculations. This means that customers will know upfront that they will benefit from any step the Government takes to reduce the impact of ‘hidden’ taxes on bills.  More importantly it also challenges the Government to put its money where its mouth is and to make good its pledges on affordability.

“However, a price rise is still a price rise and consumers should still take steps to limit the impact on their budget. There are two steps to doing this – make sure you are paying the lowest price possible for your energy by moving to a competitive deal and use less energy by making your home more energy efficient. These are everyone’s best protection from the high cost of household energy today.”

Price rise is least steep to date

According to EDF the price rise will add £49 per year to the average user signed up to its standard variable tariff.

The energy company says this represents an increase which is between £80 and £96 lower than those of rival energy companies which have also raised prices.

E.ON, the only energy supplier yet to announce a price rise, is reportedly poised to increase its gas and electricity prices by close to 7%.

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