EDF increases energy prices by 3.9%
Published 12/11/2013 | 09:46
EDF Energy has become the latest "big six" supplier to hit customers with a hike in gas and electricity bills as it revealed tariffs will rise by 3.9% in January.
But the French-owned group claimed it was "holding back" the full impact of rising charges to limit the increase for its 3.7 million residential customers.
The tariff rise - which will come into effect on January 3 - means its average annual standard variable rate bill will increase by around £49 a year to £1,300.
EDF's price increase is lower than those announced so far by its rivals, with suppliers such as npower lifting tariffs by 10% on average and British Gas raising electricity and gas prices by 10.4% and 8.4% respectively.
EDF said it was not passing on the rising cost of the Government's green scheme - which it estimates would have added another £50 to average annual household bills.
It said the move comes in advance of a review of these schemes by the Government after Prime Minister David Cameron pledged to "roll back" green energy levies.
Some 2.4 million households will be affected by EDF's price rise, with around a third of its customers on fixed-tariff deals.
But EDF claimed it would be harder for its UK retail business to make a profit, having remained loss-making in the first half.
Its power generation arm earns the group the bulk of its profits in the UK, helping overall UK underlying earnings rise 2.8% to £903 million in the first six months of the year.
EDF chief executive Vincent de Rivaz said the industry must "challenge the cost and affordability" of Government green schemes.
He added: " I know that price rises are always unwelcome, but we have taken the first step to show what can be done if rising costs are tackled head-on."