EDF, the French owned utility company has announced that cost of heating and electricity will go up, leading the last round of energy price increases. EDF has raised prices of gas by 22 per cent and of electricity by 17%. This increase translates to around £200 per annum for a dual fuel bill. At the moment an average dual fuel bill of an EDF customer stands on £1,211.
With around 5.5 million customers in the UK, around 3.25 million (59%) customers on standard and variable rates will be affected by the latest rises. It is expected that other utility companies will follow suit soon.
According to consumer groups, fuel prices could rise by up to 40% this year, bringing the cost of a typical household’s energy bill to Â£1,467.
Centrica, owner of British Gas, has commissioned a report recently that has predicted that gas bills themselves could spiral to more than Â£1,000 per annum by year 2010. Wholesale energy prices which increased by around 70% since the beginning of the year have put the suppliers under pressure to increase rates.
According to industry experts, the increase in heating and electricity rates by EDF is less than what many had expected. It is believed that EDF may have to raise the energy rates again before the end of the year or early next year to account for the cost of wholesale energy. However, this change will not affect customer with a capped or a fixed plans, even while utility companies removing such plans off the offering lists.