Energy customers on EDF's standard variable tariff will be hit by a second round of price hikes from June, after the firm announced it will increase dual fuel bills by an average of 7.2%. If you're on its standard tariff you're almost certainly overpaying already, so check NOW if you can switch and save.
The price increase - which comes just weeks after EDF hiked its standard electricity prices by 8.4% - will come into force on 21 June. One and a half million customers - around 45% of all EDF's customers - are affected by the rise. The remaining 55% are on fixed term or prepayment tariffs and are therefore unaffected.
Average dual fuel bills to rise by further £78/year
The latest 7.2% increase - based on a typical dual fuel home paying by direct debit - will add £78 to an annual bill, taking it to £1,160. It is comprised of the following standard tariff changes, based on typical use:
- Average gas prices will rise by 5.5%. This follows a 5.2% cut on 6 January.
- Average electricity prices will rise by 9%. This follows a 8.4% hike on 1 March.
The combined effect of BOTH March and June’s changes will be to increase bills for a dual fuel direct debit customer on a standard tariff by an average of 8.5%, or £91/year. For the 800,000 electricity-only standard customers, the hike will be even steeper - on 21 June you'll be paying on average 18.1% more than you were at the end of February.
EDF has vowed to give 67,000 vulnerable customers on its variable tariff a one-off rebate of £100 (for dual fuel customers) to help mitigate the increase. You'll get this if you are currently in receipt of the Warm Home Discount. The supplier has also launched a three-year fixed tariff for customers who wish to lock in a price for longer.
Get Our Free Money Tips Email!
'A final red alarm bell to take action'
Archna Luthra, head of energy at MoneySavingExpert.com, said: "EDF has hit millions with a second shock price hike. If you haven't compared and switched already see this as a final red alarm bell to take action – what are you waiting for?
"After this price rise, an EDF customer will typically be paying £1,160 a year - our Cheap Energy Club shows the cheapest tariff on the market would cost you £842 for exactly the same, and all the cheap deals are one-year fixes, so you’re guaranteed no price hikes.
"The best thing for everyone to do is a five-minute whole of market comparison, but if you really don’t want to do that, ring your provider and ask to be put on its cheapest deal. One phone call could save hundreds."
'Significant cost increases'
EDF Energy CEO Vincent de Rivaz said: "I know that price rises are never welcome, but the industry is facing significant cost increases. To be a sustainable and responsible business, we aim to make a fair margin in supplying customers. This fair margin allows us to invest for the long term, in particular in good service, innovation and smart metering."