Company says its increase is lower than its 'Big Six' rivals as it's banking on social and environmental obligations being scaled back by Government.
EDF has announced a winter price hike of 3.9% for gas and electricity customers.
It is the lowest rise announced so far by a member of the 'Big Six' and will come into effect from 3rd January, thereby keeping a promise EDF made not to increase prices in this calendar year.
Increasing bills
From 3rd January, EDF customers who are not on fixed-rate tariffs will see their bills rise by £49 a year to an average of £1,300.
The increase in bills has been blamed on the same factors the other companies cited including the rising price of transmission and distribution of energy, the cost of social and environmental schemes, the smart meter roll-out and wholesale costs.
[SPOTLIGHT]The company's Energy Chief Executive Vincent de Rivaz, who has called for a Competition Commission inquiry into the energy supply market, said: "The best way to help customers is for us to keep our prices as low as possible. I know that price rises are always unwelcome, but we have taken the first step to show what can be done if rising costs are tackled head-on."
EDF says its price rises are lower than its rivals because it is already factoring in a reduction in the costs of the Energy Company Obligation (ECO) and other social and environmental schemes. These are passed on to customers in the form of higher costs.
Prime Minister David Cameron recently promised to review these schemes, which is expected to be confirmed in next month's Autumn Statement. However, it's interesting that EDF is already banking on them being scaled back, although it adds that "if changes to social and environmental programmes are less than anticipated, the company may have to review its standard variable prices again".
Energy price rises
Of the other 'Big Six' energy companies, Scottish and Southern Energy (SSE) was the first to confirm a price rise this autumn, of 8.2%, which actually comes into effect this week.
British Gas was next in line with a 9% rise, or £123 per year on the average bill, followed by npower which had the biggest price rise of 10.4%. The last provider to announce increase plans was Scottish Power and it will push prices up by 8.6% on 6th December. Here's a rundown of all the Big Six price rises so far and when they kick in.
|
Energy company |
Price rise |
Date of increase |
|
Npower |
10.4% |
1st December |
|
British Gas |
9% |
23rd November |
|
Scottish Power |
8.6% |
6th December |
|
Scottish and Southern Energy |
8.2% |
15th November |
|
EDF |
3.9% |
3rd January |
How to cut your energy bill
The best way to protect yourself from rising energy prices is to switch to a fixed-rate tariff. This means you’ll be paying a set amount over a period of time and the amount you pay won’t be affected by rising prices.
The price you pay will depend on your own circumstances but the longest fixed-rate tariff comes from EDF with its Price Freeeze with this currently lasting until March 2017. The second longest is Npower’s Price Protector December 2017.
If you're looking for the cheapest fixed-rate tariff, First Utility is in the number one spot with its iSave Fixed v12 which will lock in prices until June 2012, as the table below shows.
|
Supplier |
Tariff |
Average Cost |
Saving vs non switcher's typical bill* |
Fixed until |
|
First Utility |
£1,178 |
£242 |
Fixed until June 30, 2015 |
|
|
E.ON |
£1,178 |
£242 |
Fixed for 12 months |
|
|
Green Star Energy |
£1,182 |
£238 |
Fixed for 12 months |
|
|
Green Star Energy |
£1,191 |
£229 |
Fixed for 24 Months |
|
|
Npower |
£1,202 |
£218 |
Fixed until the 30 April 2015 |
*Saving calculated against an average bill as declared by OFGEM, 2013. Prices correct on 12/11/13. Source: Energyhelpline.com