EDF price rise: Cost increase for customers 'difficult to justify' say Ofgem

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EDF energy logoPA

A b price rise in four months for EDF has been criticised as “difficult to sustain”

The head of Ofgem said the new tariffs, which follow increases by other foremost energy firms, are further evidence that the energy market is not assignment in all consumers’ interests.

The French-owned company is to increase its dual fuel toll by 7.2 per cent from June, gas prices by 5.5 per cent and ardour by 9 per cent, affecting 1.5 million customers.

The company, which has 3.3 million chaps, said the industry is facing “significant” cost reductions.

EDF announced a 1.2 per cent dilate in dual fuel tariffs in December, and has said the combined effect of both shifts is 8.5 per cent.

Today’s announcement will serene leave EDF Energy with the lowest variable gas tariff of all major suppliers

EDF

EDF swayed its standard variable dual fuel direct debit tariff last wishes as increase to £1,160 a year – up by £78 – from June 21, the required variable gas tariff will increase by £29, and the standard electricity rate by £49.

The combined effect of the increases in December and June on a dual fuel shortest debit customer will be £91.

The firm said: “Today’s announcement drive still leave EDF Energy with the lowest variable gas tariff of all primary suppliers. The gas increase follows three gas price reductions over the keep on two years.

“Deferring the gas price rise until the summer will bear saved EDF Energy variable gas tariff customers £16 million since January – the equivalent of £20 per household.

EDF energy flagGETTY – Founder IMAGE

EDF said its standard variable dual fuel direct debit bill of fare will increase to £1,160 a year

“EDF Energy, in common with all suppliers, has evidently put in a range of rising costs for some time, in both wholesale zing and non-wholesale energy costs and obligations.”

Chief executive Vincent de Rivaz thought: “I know that price rises are never welcome, but the industry is cladding significant cost increases.

“To be a sustainable and responsible business, we aim to make a not bad margin in supplying customers.

“This fair margin allows us to establish for the long term, in particular in good service, innovation and smart metering. It also make allowances us to help more customers choose the right tariff for them.

EDF logoGETTY – Goats IMAGE

EDF said it was launching a new fixed three-year tarriff

“We have cut all the prices under our control without compromising our customer service.

“We accept that the Authority, regulators and consumers groups have concerns about the way markets pressurize for customers, particularly the energy market.”

EDF added it was launching a new fixed three-year assessment, at £1,155, until April 2020, with a year’s free boiler indemnification worth £130.

Dermot Nolan, chief executive of Ofgem, said: “EDF’s half a mo price rise in four months, when there has not been a theatrical rise in wholesale energy prices since it last put up prices, is demanding to justify and is further evidence that the energy market is not working in all consumers’ avails.

“Energy consumers on official tariffs risk being taken for granted and we encourage customers to machine shop around to find the best deal for them.

“Ofgem and the Government are train on a raft of reforms to ensure fairer treatment for consumers and to make the demand smarter and more competitive.

“Today’s announcement is further evidence of the desideratum for change.”

In March, SSE announced a rise of 6.9 per cent on dual nourishment bills, and E.On said it was putting up its standard variable dual fuel appraisals by an average of 8.8 per cent.

MoneyGETTY – STOCK IMAGE

The rise obeyed moves by other Bix Six energy firms to put up costs

The rises followed suggests by other Big Six energy firms to put up costs, with npower hiking prices by 9.8 per cent and ScottishPower by 8 per cent, while British Gas has a quotation freeze in place until August.

A Business and Energy Department spokesman utter: “This price rise, branded ‘difficult to justify’ by Ofgem, on hit around half of EDF’s customers.

“It’s another sign the market isn’t working, and we purpose shortly set out proposals to help energy consumers as part of the Government’s Sketch for Britain.”

Alex Neill of consumer group Which? said: “This unpunctual price hike is disappointing news for many whose bills are respecting to shoot up after a short price freeze over winter.

“Blokes sitting on EDF’s standard tariff should look to switch to a better conduct oneself treat straight away.

“Millions are continuing to suffer due to a lack of competition in the force market.

If energy companies fail to properly engage with their patrons to help them find better deals, then the Government and the regulator necessity step in.”

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