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EDF Energy set to increase prices EDF Energy set to increase prices
(about 1 hour later)
EDF Energy has announced it is putting up its electricity prices by 7.9% and gas prices by 12.9% from Friday. EDF Energy has announced it is putting up its electricity prices by 7.9% and gas prices by 12.9% this week.
It blamed the "soaring cost" of wholesale energy, higher distribution costs and increased environmental obligations for the increases. The firm blamed the rise on the "soaring cost" of wholesale energy, higher distribution costs and increased environmental obligations.
EDF said the higher prices would add just under £2 a week to the typical dual fuel bill.EDF said the higher prices would add just under £2 a week to the typical dual fuel bill.
EDF is one of the UK's largest energy suppliers, providing electricity and gas to 5.5 million customers.EDF is one of the UK's largest energy suppliers, providing electricity and gas to 5.5 million customers.
Earlier this week the regulator Ofgem rejected calls to refer the energy market to the competition authorities after Npower announced price rises.Earlier this week the regulator Ofgem rejected calls to refer the energy market to the competition authorities after Npower announced price rises.
Rising costsRising costs
"We regret any decision to raise our prices," said Eva Eisenschimmel of EDF."We regret any decision to raise our prices," said Eva Eisenschimmel of EDF.
"Despite soaring wholesale energy prices, higher distribution costs and increased environmental obligations, we have been able to substantially limit the impact on our customers."Despite soaring wholesale energy prices, higher distribution costs and increased environmental obligations, we have been able to substantially limit the impact on our customers.
"We will continue to work very hard to mitigate the effect of rising costs for our customers through energy efficiency advice and our range of products," she added."We will continue to work very hard to mitigate the effect of rising costs for our customers through energy efficiency advice and our range of products," she added.
In addition, the company said 55,000 of its most vulnerable customers would continue to benefit from its Energy Assist tariff, which offers a 15% discount off standard rates. That consumers have been told to expect more price rises does not make this news any easier to swallow Allan Asher, Energywatch In addition, the company said 55,000 of its most vulnerable customers would continue to benefit from its Energy Assist tariff, which offers a 15% discount off standard rates.
The company said the cost of the energy it buys on the wholesale markets had risen strongly since it cut prices in June last year, with prices increasing by 117% for gas and 90% for electricity since February 2007. The company said the cost of the energy it buys on the wholesale markets had risen sharply since it cut prices in June last year, with prices increasing by 117% for gas, and 90% for electricity since February 2007.
Competition concernsCompetition concerns
EDF is the first major retailer to put its prices up since Npower, the UK's fourth-largest supplier, announced a 12.7% rise for its electricity customers and 17.2% increase for its gas customers on 5 January.EDF is the first major retailer to put its prices up since Npower, the UK's fourth-largest supplier, announced a 12.7% rise for its electricity customers and 17.2% increase for its gas customers on 5 January.
Like EDF, Npower said it had been "forced" to raise prices as a result of substantial increases in wholesale energy costs. At the time NPower said it believed other suppliers would follow suit.
At the time it said it believed other suppliers would follow suit. But energy consumer group Energywatch said that would provide little comfort to those facing inflated bills.
"That consumers have been told to expect more price rises does not make this news any easier to swallow," said chief executive Allan Asher.
"The underlying causes of spiralling consumer prices are a wholesale market that punishes British consumers, and a supply market that seems unconstrained by a competitive market from passing these costs on to the consumers," he added.
He renewed Energywatch's call that the "big six" energy firms - British Gas, Npower, EDF Energy, E.On, Scottish Power and Scottish and Southern Energy - should be referred to the Competition Commission.
The Npower announcement prompted Chancellor Alistair Darling to request a meeting with Ofgem about the reasons behind the price rise and its implications.The Npower announcement prompted Chancellor Alistair Darling to request a meeting with Ofgem about the reasons behind the price rise and its implications.
Independent watchdog Energywatch called for the UK's "big six" energy firms - British Gas, Npower, EDF Energy, E.On, Scottish Power and Scottish and Southern Energy - to be referred to the Competition Commission.
But earlier this week an Ofgem spokesman said that Britain had "one of the most competitive energy markets in Europe, with changing market share between the companies, price differences and good levels of switching".But earlier this week an Ofgem spokesman said that Britain had "one of the most competitive energy markets in Europe, with changing market share between the companies, price differences and good levels of switching".
He added: "We keep markets under constant review but we can only take action if we find evidence of anti-competitive behaviour."He added: "We keep markets under constant review but we can only take action if we find evidence of anti-competitive behaviour."