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Last of the big six energy firms increases its electricity and gas prices, by 4.5% and 15.4% respectively
EDF Energy has become the last of the big six energy firms to announce a price rise, unveiling an increase in electricity and gas prices of 4.5% and 15.4% respectively, removing one of the few remaining lifelines for the millions of households edging closer to fuel poverty.
EDF said the increases, which it blamed mainly on rising wholesale energy prices, will be introduced on 10 November, taking the average dual fuel energy bill to almost £1,300 a year. Consumer Focus said the price rises – along with recent price hikes from Scottish Power, Scottish & Southern Energy (SSE), British Gas, E.ON, and npower – mean "millions of people will be cutting back on other essentials if they want to keep warm".
The EDF announcement comes just a month after npower became the fifth of the six biggest energy firms to disappoint consumers with a price rise, while previously announced increases from E.ON and SSE came into effect on 13 and 14 September. According to USwitch, the average bill size across all suppliers has now jumped 14.2% from £1,132 pre-price hikes, to £1,293.
In early September 2011, EDF was named as Britain's most complained about power company, according to figures published by Consumer Focus. But upon announcing the price rises, EDF chief executive Vincent de Rivaz called for trust in the energy industry to be rebuilt, pointing out that his group's electricity price rise was in line with inflation, and the gas increase was lower than all other major suppliers. He added: "We have absorbed rising wholesale energy, network and other costs as long as possible but must reluctantly now pass some of these through to consumers."
Mike O'Connor, chief executive of Consumer Focus, said the fact that EDF has made smaller and later hikes than other suppliers is welcome, "but it won't soften the blow on those who are struggling on tight household budgets". He warned that with the industry gearing up to invest £200bn in generation and network infrastructure, worse is to come with consumer expected to foot the bill.
Mark Todd, director of the price comparison service Energyhelpline.com, said: "Consumers need to keep their eyes open because there are still lots of good deals being offered for those who are willing to switch. Fixed-rate deals of 1-4 years are available at lower costs than standard prices and there are internet rates offering savings of about £300 a year.
"In fact, only yesterday, Scottish Power brought in a new online tariff at £990, showing money can be saving if people act promptly and switch. There is still competition in the energy industry but only if you are willing to switch."
Last winter, over three-quarters of people rationed their energy use because of cost, according to USwitch, while over 14 million households went without heating at some point to keep their energy costs down. "We are in danger of seeing energy becoming an unaffordable luxury for the few instead of a household basic for the many," said the firm's energy expert Tom Lyons. "As a result many households are being forced to make unpalatable and sometimes even dangerous choices. My concern is that the impact will really become apparent this coming winter."
Richard Lloyd, executive director of Which?, had advice for consumers looking to switch: "If you're not already paying by direct debit or if you've been on the same tariff for more than a year then you could be paying too much. Most of us have never switched – so check if you can find a cheaper deal today. You could save yourself over £200.
Mark King
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