EDF Energy increases gas and electricity prices

EDF Energy is to increase its electricity prices by 17 per cent and its gas prices by 22 per cent from today.

The French-owned firm, which has five million customers in London, the south-east and the East Anglia, blamed the price hike on rises in wholesale energy prices since its last price rise in January.

A typical customer on a dual fuel tariff will pay £3.97 a week more for their energy.

The firm claims coal prices have risen 70 per cent, gas prices have risen 93 per cent and electricity prices are up 47 per cent.

Eva Eisenschimmel at EDF Energy, said: “Record world oil prices have continued to drive up wholesale gas prices… this has impacted hugely on the cost of supplying energy to our customers.

"We have been absorbing some of these costs in recent months, but we now have to pass on some of the resulting rise in wholesale costs to our customers."

EDF is reaffirmed its moves to aid consumers facing fuel poverty.

Some 100,000 of the firms most in need customers are set to benefit from a 15 per cent discount following major expansion of the firm's social tariff.

Yesterday Scottish & Southern Energy (SSE) hinted at further price rises for customers, following a report last week from British Gas-owner Centrica that average gas bills alone could rise to over £1,000.

Ann Robinson, director of consumer policy at uSwitch.com, said: "After weeks of speculation and warnings, the axe has finally fallen. Although EDF Energy is the first supplier to succumb to the inevitable, this is not going to be a unilateral move - other suppliers are suffering too and are sure to follow suit over the next weeks or months.

"The days of cheap energy are over, we are potentially looking at a 61 per cent or £555 increase in total this year."

She added if industry insiders are correct and the average energy bill hits £1,467 by the end of 2008, we are in danger of seeing household energy becoming unaffordable for growing swathes of society.

"This is not just a short-term spike. Consumers cannot afford to ignore this - they need to take action now to stand any chance of limiting the impact of higher prices," she said.

Ms Robinson advised online energy plans remain a good option, however fixed or capped price plans could be a lifeline for those who are more vulnerable to price rises.

"These plans carry a premium, but if you've never switched before you will probably still save money immediately by moving to one. However, the best fixed and capped deals are disappearing fast so consumers need to act quickly," she concluded.

Liberal Democrat leader Nick Clegg described the price hike as "outrageous" and claimed it could lead to bills rising £200 a year.

"When the winter comes this price rise will hit the elderly and the most vulnerable the hardest. The government cannot sit idly by and allow them to suffer," he said.l

"When one company raises its prices the others soon follow suit. At a time when energy companies are enjoying a £9 billion windfall, it is unacceptable that they can continue to squeeze more profits out of people who are already struggling."

Daniel Barnes