Tuesday 12 February 2019

EDF Energy second supplier to raise prices after new Ofgem cap

EDF Energy second supplier to raise prices after new Ofgem cap

EDF Energy has become the second supplier to announce a 10% increase in prices after Ofgem raised the price cap level.

The £118 price rise will affect around 1.3 million customers on the standard variable tariff from 1st April 2019.

They will see their energy bills increase to a total of £1,254 on avearge a year - the cap level set by the regulator - adding £160 million overall across the UK.

This standard variable tariff is said to be £286 more expensive than the cheapest deal currently available on the market.

Prepayment meter customers also face a £106 price rise.

A spokesperson from EDF Energy said: “Ofgem’s announcement confirmed that costs increased significantly last year and this was further evidenced by the collapse of several small suppliers. As a responsible and long-term business, it is important that we reflect the costs we’re facing.

“These changes for standard variable tariffs will not come into effect until 1 April and we will write to customers before then, highlighting the other tariffs available that they can switch to.”

It follows E.ON's announcement to raise prices after Ofgem's increased price cap level.

Rik Smith, Energy Expert at uSwitch said: "EDF Energy are the second of the Big Six suppliers to increase their prices and we wouldn't be surprised to see a domino effect with other energy companies following suit.

"Some households on standard tariffs will be hit harder than the avearge if their supplier prices up to the cap, which could push their bills to the edge of affordability. People who are already struggling with their bills are the ones who will suffer most."

Consumers are being encouraged to shop around and switch.

Written by

Bruna Pinhoni

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