EDF Energy has announced that the price of its standard variable electricity tariff will rise by 2.7% in June - act now to beat the rise.
Gas prices are not rising, but electricity prices will go up by an average £16 from 7 June on EDF's standard tariff - this takes the average standard variable dual fuel price to £1,158/yr based on typical use.
In addition, customers who pay by cash or cheque will also pay £6/yr more per fuel (gas and electricity) on average. We also say it's cheaper to pay by monthly direct debit and that re-emphasises the point.
The news follows the announcement on Tuesday that British Gas will increase gas and electricity prices by 5.5% in May. We predicted at the time that more would follow, and EDF is indeed the next of the big six to raise prices.
EDF says the hike will hit 41% of its customers. If you're affected, you could likely save by switching tariff given its standard rate is way more expensive than the cheapest deals anyway, even before this announcement.
To help, our Big Switch 10 is now on, to see if you can save by switching do a full market comparison on our free Cheap Energy Club.
If you are an EDF Energy customer and are already on a fixed tariff, or are on the safeguard tariff or prepayment meter you are unaffected by this change.
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What does EDF Energy say?
EDF Energy Managing Director of Customers Beatrice Bigois said: "We know that price rises are not welcome and we have worked to offset rising energy and policy charges by cutting our own costs. However, these rising costs mean we will be increasing our standing charge for electricity on the 7th June, affecting around 40% of our customers.
"Most of our customers, those on a fixed tariff, or who have a direct debit gas only account, a safeguard tariff or prepayment meter will be unaffected by this change.
"We will be writing to affected customers this month to encourage them to choose a fixed price tariff or to pay by direct debit to save on their bills."
What is a standard variable tariff?
A standard tariff is an energy supplier's default tariff. If you've never switched it's likely you're on one, while those on fixed deals are automatically rolled onto this tariff once their fixed-term period expires.
The cost of a standard variable tariff, as the name suggests, is variable. So the rate you pay can go up or down depending on wholesale energy costs – what suppliers pay for gas and electricity – and there are no exit fees or fixed end dates.
Conversely, a fixed-price tariff essentially means the unit price you agree to pay for your energy is set for a certain period such as one or two years, meaning it won't increase for the duration of the fix. However, these tariffs may have exit fees if you decide to switch before it ends.