Performance Report 2004
Ambition 1: Customers
Between January and September 2004, the winter forward contract prices for power and gas rose by 32% and 38% respectively. These market price increases had significant, but varied, impacts on our costs.
It became necessary to increase our retail prices to cover increased costs associated with generating and supplying electricity. Tariffs were increased in March and again in September, which resulted in an average increase across all brands to customers of 10.8% for electricity and 8.3% for gas.
Additionally, the rise in gas prices increased our reliance on our two coal-fired power stations, which had a knock-on effect in terms of our CO2 emissions.
We put in place a number of measures to soften the impact of raising prices.
In September 2004 we launched the Price Promise product. We promised to be cheaper on dual fuel than British Gas over the period from September 2004 to January 2006. A refund of double the difference, plus 1,000 Nectar points, was offered if we were to fail.
Starting in April 2005. EDF Energy will be offering to freeze prices until at least 31 March 2006 for its 250,000 customers 'most in need', primarily those customers classed as 'fuel poor'. These customers will also be offered a free, independent benefits entitlement check through the EAGA Partnership.
EDF Energy has also launched a new capped price product for residential customers, which guarantees no further price increases before 31 March 2007. For under 50 pence per week extra, the price during this period is guaranteed not to rise, and could go down. This offer, available to standard credit and Economy 7 customers, is open to the first 100,000 customers who apply before 31 March 2005.