- EDF Energy becomes the last major supplier to announce a rise in standard domestic residential prices, effective from 2 March
- During winter, when gas consumption is at its highest and Britain endured the coldest December for 100 years, EDF Energy was the only major supplier to freeze its prices
- EDF Energy customers have benefited from some of the lowest prices of any major supplier, two winters in a row
- New pricing structure to be introduced by the company to make bills simpler following customer feedback
Price Change Details
Following the end of its Winter Price Freeze Guarantee, prices will rise for standard residential tariffs with gas bills increasing by an average of 6.5% and electricity bills on by 7.5% on average for a typical customer, from 2 March 2011*. We are the last major supplier to announce a price change, increasing its standard residential gas unit prices for the first time since 2008.
Our customers have benefited from some of the lowest prices in the market when it matters most. A typical customer will have consumed just over half their annual gas consumption during this period.** We have also been among the cheapest two suppliers for standard dual fuel customers paying by cash/cheque for 90 out of the past 100 weeks.***
Effective purchasing of wholesale gas many months in advance enabled us to protect customers from a price rise during each of the last two winters. However, increasing wholesale prices and non-energy costs, such as higher network charges and new environmental obligations, have forced the company to raise prices from March.
Making Bills Clearer
Following customer feedback that bills should be clearer, We will also be improving the simplicity and transparency of bills by extending its online and fixed price tariff structure to most of its tariffs, eliminating banded pricing for standard metered customers.^ These customers will now pay a standard unit rate for all energy consumed, plus a small standing charge per day. For a dual fuel customer with standard gas and electricity meters, this charge is 35p† per day. The overall price change announced today includes these costs.
Communicating the Changes
We will be writing to all of our customers impacted by the changes with the majority of customers receiving their letter before the effective date. The letter will clearly outline the changes and provide many ways we can help customers save money.
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* Percentage increase for electricity and gas increases to a typical bill (3,300kWh electricity and 16,500kWh gas per annum), averaged out across all regions, meter and payment types.
** Between 9th November 2010 and 28th February 2011, total proportion of gas consumed as a proportion of the annual average usage is 53% using information based on EDF Energy consumption demand figures.
*** EDF Energy has ranked in the two lowest priced suppliers for the period 1st November 2008 to 1st March 2010, with the exception of October & November 2010 (when EDF Energy was the third cheapest supplier). Based on annual bills, calculated on the 1st of each month, for a customer consuming 3,300kWh electricity and 20,500kWh gas per year – and shown as an average across all regions for cash/cheque.
^ Customers who have time of use tariffs such as Economy 7, Economy 10, Eco 20:20 will continue to see multiple unit rates on their bills with a single standing charge All figures include VAT.
† Standard electricity charge is 13.81p/day; Standard gas charge is 20.71p/day. Combined charge for dual fuel customer receiving standard electricity and standard gas from EDF Energy is 34.52p/day.