EDF Energy Rise Prices

Following on from the news last week that NPower was rising fuel prices for both its gas and electricity customers, EDF Energy has announced it will follow suit. Electricity prices will rise by 7.9% and gas prices by 12.9% (compared with NPowers rises of 12.7% for electricity and 17.2% for gas). EDF also blame the rises on the "soaring" wholesale cost of energy.

"We regret any decision to raise our prices. 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."
Eva Eisenschimmel, EDF Energy

EDF is one of the UKs largest energy providers with over 5.5m customers. The increase will lead to an average rise of £2 per week on customers bills. 55,000 of its most vulnerable customers would continue to benefit from its Energy Assist tariff, which offers a 15% discount off standard rates. More information is available on help that is available to those who are in fuel poverty.

"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"
Allan Asher, Energywatch, Chief Executive

"Britain has one of the most competitive energy markets in Europe, with changing market share between the companies, price differences and good levels of switching. We keep markets under constant review but we can only take action if we find evidence of anti-competitive behaviour."
Ofgem

It is unsurprising to see energy prices rises passed on to consumers, as this has been clearly shown through the continued rises of wholesale prices of all fuel sources, such as coal, gas and oil throughout 2007. Whilst fuel price rises have the biggest impact on low income households, overall it reduces our energy consumption, improves our efficiency, and reduces the payback of implementation of energy efficiency technologies and renewable energy technologies.