EDF Energy sends warning sign of a price rise

With four of the big six energy suppliers having already announced price rises in recent months, news that EDF Energy is pulling the cheapest fixed price energy plan from the market could be a worrying sign that it is about to follow suit.

Tom Lyon, energy expert at uSwitch.com, says: "The news that EDF Energy is pulling its cheapest fixed price plan will start alarm bells ringing. Previously, when the best fixed plans disappeared off the market, price rises have been quick to follow.

"But, in this case EDF Energy has brought out a new fixed plan that at £1,051 a year is only £42 a year more than the plan it is pulling - plus consumers can fix their prices for an extra three months until the end of December 2012. And its new plan is still the cheapest of the big six. This suggests that there is still time for those who want to fix their prices, but it's fair to say that they may be drinking in the last chance saloon.

"Fixing your energy prices offers security and peace of mind, especially for those worried about the impact of price hikes on their household budget. But consumers should be aware of reports that wholesale energy prices are falling, which could bring price rises to an end or even signal future price cuts. Those who have fixed may not be able to benefit from these so people need to consider this carefully. What is important is that whatever type of plan you opt for, always make sure you get an independent and impartial comparison based on your own personal circumstances before signing on the dotted line."