SimplySwitch: EDF price rises

EDF has become the second supplier to raise prices on its standard energy tariffs. Prices will increase by 12.9 percent for gas and 7.9 percent for electricity from Friday.

Karen Darby, founder of SimplySwitch, the price comparison and switching service, comments: "Last year, when all of the other major suppliers cut gas and electricity prices, EDF only reduced prices for gas. Throughout 2007, EDF’s electricity customers experienced no benefit from the drop in wholesale prices. Because EDF is the ‘default’ electricity supplier for the whole of London, and several other regions, millions of people would have been affected.

“In April 2007, after coming under fire from energywatch, EDF announced gas price reductions that didn’t come into effect until the middle of June. Now that prices are rising, customers have just three days to react before the new rates come into effect.

“This latest move by EDF, which has 7.8 million customers in the UK, may well open the floodgates for other companies’ price increases. Last week, npower became the first provider to raise prices in 2008, adding around £159 to the average bill. Now that EDF has followed suit, we expect to see a flurry of price-rising activity over the coming weeks.

“Anyone wishing to protect themselves from price rises should act as soon as possible. Unfortunately, Scottish Power removed its capped deal from sale last week, leaving just one ‘price protection’ tariff remaining.”