EDF Energy to increase prices

EDF Energy, the only major British energy supplier to freeze its prices right through the winter, has announced a price rise. The increase, 6.5% for gas and 7.5% for electricity, comes into effect on 2nd March. This means that customers won't feel the impact on their winter bills, but will see the increase come into effect as their energy consumption tails off through the spring.

Rival suppliers have already pushed through their hikes - some as early as November 2010 - adding over £560 million onto household energy bills. Including EDF Energy's move announced today, prices have increased by 6% or £63 on average, taking the typical household energy bill up from £1,070 to £1,133.

The news will add further weight to demands for an enquiry after Ofgem recently revealed that energy company margins - the profits made per customer - had shot up by 49% over the last few months.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "While this news isn't exactly welcome, EDF Energy's customers will be relieved that their supplier protected them from higher prices through the winter, when the impact on bills would have been far more severe.

"This is the last in a line of energy price hikes to hit British households and the impact should not be underestimated. Over three quarters of people (76%) have cut down or rationed their energy usage this winter because of cost - a 7% increase on last year. And, even more worryingly, an estimated 14 million households have gone without heating at some point this winter to keep their energy costs down - this is unacceptable.

"Now this round of price increases has been completed consumers should be able to enjoy a period of stability. This means that it is an excellent time to shop around for a better deal, potentially saving up to £458, which would wipe the effect of price increases out and put money in the pocket ready for next winter."