EDF Energy raises duel fuel bills for second time in 2018

EDF Energy has announced a second increase to its standard tariffs this year - blaming a surge in the cost of wholesale energy.

The company - one of the so-called "big six" suppliers - said dual fuel customers on the default tariff would pay 6% extra from 31 August, taking the average annual bill to £1,228. That is a rise of £70.

Electricity and gas customers would need to find an extra 6.1% and 6% respectively, EDF (Paris: FR0010242511 - news) added.

The firm had already raised their bills last month but said on Thursday that it had endured a 13% increase in wholesale costs since April, driven partly by high demand during the Beast from the East winter storms,

It also cited rising prices this year as the cost of raw energy, in the form of oil and gas, has shot up.

Industry price increases have coincided with government plans for a price cap starting this winter on default tariffs - usually a standard variable tariff (SVT) mostly paid by households which do not switch suppliers for better fixed rate deals.

SVTs have been condemned by the prime minister as a "rip-off" but firms using them argue they reflect not only market forces but also the growing cost of government energy initiatives.

EDF's managing director of customers, Beatrice Bigois, said: "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."

Kevin Pratt, consumer affairs expert at MoneySuperMarket, condemned the increase.

He said: "Wholesale costs have been increasing but this is the second price rise from EDF in less than three months and pushes their standard variable tariff right to the top in terms of most expensive - at £1,228, just a fraction cheaper than
npower.

"The previous rise, announced in April and effective from June 7, was relatively small compared to the other big six suppliers, but it was still a rise and by announcing another one today they are hitting customers when they're
already down."