EDF Price Rises May 2018
British Gas opened the floodgates to price hikes by announcing that it would raise its prices by 5.5% in May 2018. EDF was the second of big six to raise their prices, and while not as eye-wateringly high as British Gas, the price increase will hit 41% of EDF’s customers, over one million customers, hard in the current economic climate.
EDF announced a price increase of 2.7% on their electricity prices. For the moment gas prices will stay the same. This means that the typical standard dual fuel customer on a variable rate will end up paying around 1.4% more for their energy bills. Customers who pay by direct debit will see their bills increase to an average of£1158, while customers who pay by cash or cheque will see their average bill rise to £1248.
EDF, just as British Gas, E.ON, Scottish Power and Npower is blaming the price rise on factors outside of their control such as government incentives, rising wholesale prices and the installation of smart meters. Béatrice Bigois, managing director of customers at EDF, said: “We know that price rises are not welcome and we have worked to offset rising energy and policy charges by cutting our own costs.” However, customers may not be reassured by these promises as these price rises follow increases in 2017 when EDF prices rose by 7.2%, supposedly for the same reasons.
Will I be affected?
As with the British Gas price rises, the customers who are most affected by the increase in electricity and bills are those who are on a standard variable tariff (SVT). If you are unsure if you are on one of these tariffs it’s easy to find out by looking at your bill or giving us a call.
Standard variable tariffs track the price of energy on the wholesale market, and so your bill changes every month. Customers are usually on these standard variable tariffs because they have never switched supplier. Also, many customers end up on these tariffs by default when their fixed tariff contract ends. These tariffs are in general terrible value for money and customers should do everything possible to switch to more economical tariffs.
What can I do to avoid the price hikes and save money?
The best way to save money is without a doubt changing your supplier. There are lots of reasons to switch from EDF Energy aside from their high prices. EDF Energy has an abysmal customer satisfaction record. From 998 reviews on Trustpilot, they only have a satisfaction score of 18%. This score is far below many independent suppliers, who generally score well for customer service and telephone waiting times.
Also, for environmentally conscious customers EDF is the owner of two of the highest powered fossil fuel generation is the UK, which is located in Nottinghamshire. Customers will find that by switching supplier they will not only save money but can also have 100% renewable energy supplied to their homes.
Switching is more straightforward than you think and can be done in a matter of minutes over the phone, or with a comparison tool. The switching process is also simple and in many cases, it doesn’t require a visit from an engineer. Customers who are on one of the variable tariffs that are affected won’t have exit fees so they can leave their contract whenever they want without paying any penalties.