EDF first of the Big Six to hike prices after latest price cap was revealed: Default energy tariff customers face a £140 annual rise to bills
- The price cap hike is the largest ever seen and will bite in October
- All energy giants expected to announce similar rises
- Latest energy price cap rise means bills will typically rise £139
EDF is the first of the Big Six energy giants to reveal it is rising its prices following the latest price cap announcement from Ofgem.
Default tariff customers will typically see dual-fuel bill increase 12 per cent to £1,277.
The price cap – set by the energy regulator – will add £139 to the average bill for 11million households on their suppliers’ default tariff from October.
It is the largest increase since the price cap came in at the start of 2019 and has been blamed on a rise in wholesale energy prices as well as suppliers trying to recoup costs after customers missed payments during the pandemic.
EDF is first of the Big Six to announce it is hiking prices following the energy price cap review
Ofgem says wholesale energy costs have risen by more than 50 per cent over the last six months with gas prices hitting a record high.
Whilst EDF is the first to announce it is hiking its prices, this will likely be followed by many other providers.
To combat the rising costs, EDF has encouraged its default tariff customers to switch to a fixed deal which are typically much better value.
It said that in the last year, EDF customers saved £12.5million by fixing their deal.
In addition, it said it won’t charge its customers exit fees if they move to another of its energy-only tariffs, meaning customers who fix now can switch later if they find another EDF tariff that could save them more money.
Philippe Commaret, managing director of customers at EDF, said: ‘We know a price rise is never welcome, especially in tough times.
‘In 2020, prices for our standard variable customers fell by an average of £100 a year, and we’ll cut prices again as soon as we’re able.
EDF has encouraged its default tariff customers to switch to a fixed deal which are better value
‘As Ofgem has explained, it is global gas prices that have caused the unprecedented increase in wholesale energy costs and as a sustainable, long-term business we must reflect the costs we face.
‘We will be directing financial assistance to those most in need through our £1.9million support fund, helping customers reduce their bills, manage their debt and even helping with costs for things like more energy efficient white goods.
‘Customers on tariffs that are due to change in October will be written to, reminding them to check that they are on the best tariff for them.’
The energy price cap was launched in January 2019 by watchdog, Ofgem, as a way of keeping down the cost for households across the UK.
It is reviewed every six months with the new hike set to come in on 1 October before it is reviewed again to reflect the costs of supplying electricity and gas for suppliers.
However, many suppliers price their tariffs right up to the limit and have been accused of treating the cap as a target.
The latest price spike of £139 will come as a significant blow to many, as energy prices reach their highest level in years.
As a result, customers are encouraged to use price comparison sites to see if they could save on their bills by switching supplier or moving to a fixed deal.