EDF Energy are to raise the cost of its standard electricity and gas rates by 6% from 31 August. The rise will affect 40% of EDF’s customer base, which is around 1.3 million customers.
Those affected are on EDF’s standard variable tariff — and this isn’t the first price rise they’ve been subject to this year.
A price rise announcement in early June saw the average EDF standard variable tariff dual-fuel bill increase by £16 a year (1.4%). When added to this new rate increase, EDF standard customers will have received a bill increase totalling £86 across the two price rises.
What’s causing price rises?
Suppliers have attributed their rises to significant increases in wholesale costs, with EDF claiming the ‘beast from the east’ had a part to play by upping demand.
Another reason has been global oil market changes negatively impacting both gas and electricity prices.
Earlier in the year, EDF’s strategy was to try and offset rising wholesale energy and policy change costs by cutting their own costs. However, it became necessary to pass the costs on to electricity customers in the form of a small rise of 1.4% for a dual-fuel bill.
Not the first, and probably not the last
EDF have followed the likes of E.ON and Bulb in raising prices twice in 2018. This second round of price rises is likely to attract other suppliers if wholesale costs continue to climb.
Customers on standard variable tariffs are already paying more than they need to when compared to the more competitive deals available — the good news is that switching is quick and easy. Customers moving from a standard variable tariff may want to consider switching to a fixed deal and save up to £482 in the process.
Fixed deals offer rates that are set for a duration of time, so can’t be affected by any price rises.
Don’t wait for yet more companies to jump on the price rise bandwagon. Households should vote with their feet by locking in a cheaper fixed-rate tariff, and remind energy suppliers that if they feel taken for a ride they will find a better deal elsewhere.
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