Regular readers will be aware that EDF had put in place a ‘winter freeze’ on its prices in what, to my mind, was largely a marketing exercise. A song and dance was made about EDF ‘not’ raising their prices in line with other energy providers, but, you could see from a mile off that they were just delaying a price increase, whether it is justified or not. EDF plan to raise prices the day after their ‘winter freeze guarantee’ finishes (1ST March 2011), surprise surprise!
The cynical among us may wonder if EDF simply had hoped to attract customers fleeing from the prices rises from the other ‘big six’ energy companies, to only then hit these people with a sucker punch. Who knows? But let’s be honest if a customer who switched energy supplier to EDF will probably be loathed to switch again
In November Ofgem launched an investigation into recent energy price rises amid claims of profiteering by the major energy companies.
Why are EDF raising prices and by how much?
EDF said rising wholesale energy prices and 'non-energy costs, such as higher network charges and new environmental obligations' had forced the company to make the move. EDF claim the price increase will cost customers on an average dual fuel bill an extra £1.31 per week - or an extra £68 a year.
So how much have the other ‘big six’ energy companies raised their prices by?
- EON raised its electricity prices by 9% and their gas prices by 3% from 4 February.
- Npower raised their gas and electricity bills by 5.1% from 4 January
- Scottish Power increased its customers’ electricity bills by an average of 8.9% while gas bills rose by 2%
- British Gas raised its prices by 7% this winter.
- Scottish & Southern Energy increased household gas prices by 9.4 percent at the start of December.
What you can do about it
I’ve written a number of articles which you will find helpful which will not only explain why these increases keep happening but also tell you how to avoid them and how to reduce your energy bills. Just click on the relevant link below to find out more:
How electricity and gas prices are calculated and why they keep going up
Money tip #118 – The rule allowing you to reject energy price rises
Lunchtime Money Makeover – Top 6 ways to reduce your energy bills
Book a free financial review
Looking to ensure your finances are on track? Our partner Unbiased will arrange for a qualified, FCA-regulated adviser to contact you
- Discuss your financial situation
- Identify what steps, if any, you should take
- Free and without obligation
