EDF Energy price increase comment…..has the energy market become competitive?

  • Electricity prices increased by 4.5%, gas prices increased by 15.4%.
  • Standard energy bills will increase by £114 from 10 November 2011.
  • Standard prices will be 12% higher than their previous record in 2008.

Wholesale Prices September 2011

Wholesale Prices September 2011


EDF Energy today (15 September 2011) became the last of the Big 6 to announce energy price hikes. Effective 10 November 2011, EDF Energy will increase electricity prices by an average 4.5% and gas prices by 15.4%. The increase will see an EDF Energy customer on a standard tariff paying by monthly direct debit pay an extra £114 a year. This will take EDF Energy’s standard energy prices to a level 12% higher than they were at their previous peak in late 2008.
 
The increase is the lowest of the Big 6. EDF Energy’s Standard tariff will undercut British Gas’ standard prices by 4.4% (£54).
 
The lower overall increase can be largely attributed to the relatively small increase in electricity prices that EDF Energy has announced. EDF Energy has attributed this to their investment in “low carbon nuclear generation which enjoys stable costs compared to gas and coal.”
Wholesale Graph September 2011

Wholesale Graph September 2011

What we think:
 
While seeing double digit price increases is never going to go down well, EDF Energy customers on standard tariffs at least have the consolation prize of knowing that their bills will go up later, and by less than the standard bills of the other main energy suppliers.
 
However, this is no reason to be complacent. You can still fix your energy prices over the next year at a 15% discount to standard prices and pocket a saving of £186. Surely that has to be worth doing.

Standard Energy Bills Analysis September 2011

Standard Energy Bills Analysis September 2011

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