Second rise ‘difficult to justify’ says energy regulator
A SECOND price rise in four months for EDF customers has been attacked as “difficult to justify” by the energy regulator.
The head of Ofgem said the new tariffs, which follow increases by other leading energy firms, are further evidence that the energy market is not working in all consumers’ interests.
The French-owned company is to increase its dual fuel tariff by 7.2 per cent from June, gas prices by 5.5 per cent and electricity by nine per cent, affecting 1.5m customers.
The company, which has 3.3m customers, said the power industry was facing “significant” cost increases.
EDF announced a 1.2 per cent increase in dual fuel tariffs in December, and has said the combined effect of both changes is 8.5 per cent.
EDF said its standard variable dual fuel direct debit tariff will increase to £1,160 a year – up by £78 – from June 21, the standard variable gas tariff will increase by £29, and the standard electricity tariff by £49.
The combined effect of the increases in December and June on a dual fuel direct debit customer will be £91.
The firm said: “Today’s announcement will still leave EDF Energy with the lowest variable gas tariff of all major suppliers. The gas increase follows three gas price reductions over the last two years.
“Deferring the gas price rise until the summer will have saved EDF Energy variable gas tariff customers £16m since January – the equivalent of £20 per household.
“EDF Energy, in common with all suppliers, has faced a range of rising costs for some time, in both wholesale energy and nonwholesale energy costs and obligations.”
Chief executive Vincent de Rivaz said: “I know that price rises are never welcome, but the industry is facing significant cost increases.”
Alex Neill of consumer group Which? said: “This latest price hike is disappointing news for many whose bills are about to shoot up after a short price freeze over winter. Customers sitting on EDF’s standard tariff should look to switch to a better deal straight away.”