EDF Energy is set to increase the prices of its standard variable dual fuel tariff by six percent starting from the end of next month. The company blamed the increased costs on an increase in the wholesale prices.
The energy company disclosed that these have so far, already increased by 18 percent this year, and around 13 percent since April.
The news arrived four months after EDF decided to increase the price of its standard bill by 1.4 percent last June, because of the increased fixed costs that are associated with supplying electricity.
Béatrice Bigois, the managing director of customers of the EDF, urged those who wish to avoid these price changes to change to one of the fixed tariffs of the firm.
She stated: “We know that another price rise will not be welcome, and we had hoped that our limited changes announced in April would be enough. However, energy costs have continued to rise significantly and despite our best efforts to absorb some of these by reducing the costs within our control – sadly we can no longer sustain this. Customers who wish to avoid this increase will be encouraged to choose one of our fixed price tariffs when we write to them later this month.”
The said move will affect all the standard variable customers, who account for approximately 40 percent of the customer base of the firm. The customers who are on a prepayment tariff, the safeguard tariff, or a fixed price tariff will not be affected by the increase.
The households that are affected by the increases will be required to pay £1,228 per year, which is an average increase of £70. Gas tariffs and standard variable electricity will increase by six percent and 6.1 percent respectively.
This makes the standard variable tariff of EDF the second most expensive of the ‘big six’ firms, with only Npower offering a tariff with the higher costs.
The said price increases come after the government presented a new law that will be capping high energy tariffs by next winter.