EDF Energy has announced that it is taking its most popular fixed rate energy deal off the market.
Its Energy Blue + Price Promise April 2014 tariff was one of just two fixed price products that allowed consumers to leave a contract early without penalty. This means Scottish Power are the only remaining company with such a tariff.
EDF says it has pulled the deal because of unprecedented demand and it has reached its customer limits on the product. The energy company is expected to launch another similar product soon, though this is likely to be more expensive.
The news has led to concern that other companies will raise prices or pull their most competitive deals ahead of the winter months when energy use - and bills - rise sharply.
Scott Byrom from MoneySupermarket.com said: “As a result of the increase by SSE, I expect a domino effect in the market as the other members of the Big Six providers follow suit to hike prices.”
EDF’s move follows on from the price rises announced by SSE last week. Surprisingly, no other suppliers have announced price rises this week.
SSE put up the price of gas and electricity for dual fuel customers by an average of nine per cent. This means customers with both forms of energy will see an average rise of £119, taking the total annual utility cost to £1,354 a year.
Scottish Power has confirmed that it will extend its price guarantee to January 2014, whilst promising to keep prices at the same level of an average of £1,052 a year - £6 a year cheaper than the expired EDF product.
However, the fact that EDF has pulled such a deal should provide the reminder to customers that they need to check they are on the most competitive deal before the higher usage of the winter months kicks in. Otherwise they could find themselves paying more expensive rates over the winter should other firms also raise prices.
Tom Lyon, energy expert at uSwitch.com, says: “Consumers who want to fix their energy prices cannot afford to hang around – these deals are flying off the shelves and could be pulled at any time.
"People have quickly grasped that paying a low price today, coupled with a price guarantee and no exit penalties makes fixing your prices a real ‘no brainer’. It gives absolute peace of mind coupled with flexibility, vital for consumers as we head into what could well be a winter of price hikes.”