EDF becomes first Energy Supplier to hike Energy Bills in line with the next Price Cap Level
EDF Energy has become the first energy supplier to announce that it is raising the cost of energy bills for its standard variable tariff customers in line with the next price cap level. Customers will see their bills rise 12% to £1,277.
Energy Bill price rises inevitable?
Ofgem’s decision to raise the energy price cap to its highest ever level in the face of a spike of wholesale costs was always going to result in some energy suppliers raising their prices to as close to the cap as possible.
From October 1st, customers on default tariffs who pay their energy bills via direct debit will see their bills rise £139, up from £1,138 to £1277. Prepayment meter customers will also see their bills rise from £1,156 to £1309.
What did EDF say?
Philippe Commaret, managing director of customers at EDF, said: “We know a price rise is never welcome, especially in tough times. In 2020, prices for our standard variable customers fell by an average of £100 a year, and we’ll cut prices again as soon as we’re able.
“As Ofgem has explained, it is global gas prices that have caused the unprecedented increase in wholesale energy costs and as a sustainable, long-term business we must reflect the costs we face.
“We will be directing financial assistance to those most in need through our £1.9 million support fund, helping customers reduce their bills, manage their debt and even helping with costs for things like more energy efficient white goods.
“Customers on tariffs that are due to change in October will be written to, reminding them to
check that they are on the best tariff for them.”
Other Energy Suppliers taking a wait and see approach
Some energy suppliers are holding off from making price hikes with the likes of Bulb Energy saying that it will take a ‘wait and see’ approach.
“We hold off passing on price increases as long as we can and we’ll always give our customers 30 days’ notice,” said a Bulb spokesperson.
Other energy suppliers are likely to use the price cap rise as a way to attract more customers to them. By offering cheaper tariffs they are betting that they will snap up those customers concerned over the price hikes.
Octopus Energy for example has said that it will charge £130 less than the price cap to charge its customers as low an amount as possible.
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Further Reading
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Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers get set up and start supplying.
For more information on how to start and manage an energy company, get in touch with Dyball Associates today.
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