12 Apr 18
Customers

EDF Energy announces changes to standard variable electricity tariff

  • Standing charge on standard variable electricity to increase
  • Impact for standard variable dual fuel Direct Debit customers will be 1.4% (+£16) to £1,158 from June 7th [1] 
  • Fifty-nine per cent of EDF Energy customers will NOT be affected by the price changes
  • Charges for using cash or cheque payment will increase by £6 per fuel per year [2]
  • Affected customers will be encouraged to choose a fixed tariff or to save by switching to Direct Debit

EDF Energy is today announcing a change to its standard variable electricity tariff, effective from June 7th. Fifty-nine per cent of EDF Energy customers who are already on a fixed tariff, have a Direct Debit gas only account, or are on the safeguard tariff or prepayment meter will be unaffected by this change.

EDF Energy’s standard variable dual fuel Direct Debit tariff will increase by 1.4% to £1,158 a year (+£16) [1] following an increase in the standing charge for electricity to 23.28p a day, (an increase of 2.7% on a typical electricity bill) reflecting the increase in some of the fixed costs associated with supplying electricity. There will be no change to gas prices for Direct Debit customers.

There will also be an increase in the charges for customers choosing to pay by cash or cheque by £6 per fuel per year [2] to be closer to the real cost of serving these customers – this change will apply to our standard variable tariffs and future fixed tariffs. A dual fuel standard variable customer choosing to pay by cash or cheque will see a combined increase of £28 a year (+2.3%) to £1,248 a year [3].

EDF Energy continues to face pressures with energy, policy and the costs of installing smart meters all increasing significantly since last summer. Ofgem found that costs have risen by an average of more than £57 [4] over the previous six months when they reviewed and increased the level of the prepayment and safeguard tariff caps in February.

EDF Energy Managing Director of Customers Béatrice Bigois 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, these rising costs mean we will be increasing our standing charge for electricity on the 7th June, affecting around 40% of our customers. Most of our customers, those on a fixed tariff, or who have a Direct Debit gas only account, a safeguard tariff or prepayment meter will be unaffected by this change.

"We will be writing to affected customers this month to encourage them to choose a fixed price tariff or to pay by Direct Debit to save on their bills.”

EDF Energy has done more than many suppliers to encourage customers to choose their energy tariff with 43% of customers having selected fixed tariffs. So far this year we have written to over 1 million customers to provide energy saving advice. All impacted customers will be written to this month, providing personalised information on how these changes will affect how much they pay. These letters will provide customers with information on cheaper tariffs, and for those paying by cash or cheque there will be additional detail on savings available if they switch to Direct Debit.

 

[1] Based on a dual fuel direct debit bill at typical consumption averaged across all regions. Typical use as defined by Ofgem is 3,100kWh standard electricity and 12,000kWh gas.

[2] Based on typical consumption. Typical use as defined by Ofgem is 3,100kWh standard electricity and 12,000kWh gas.

[3] Based on a dual fuel cash/cheque bill at typical consumption averaged across all regions. Typical use as defined by Ofgem is 3,100kWh standard electricity and 12,000kWh gas.

[4] https://www.ofgem.gov.uk/gas/retail-market/market-review-and-reform/implementation-cma-remedies/safeguard-tariff-or-price-cap

For more information

Shahlia Nelson-Rogers
External Communications Manager - Customers
(T) +44 (0)7875 113747
shahlia.nelson-rogers@edfenergy.com

For more information

Claire Barratt
Senior External Communications Manager - Customers
(T) +44 (0)7875 113 377
claire.barratt@edfenergy.com

About EDF Energy

EDF Energy is the UK’s largest producer of low-carbon electricity, meeting around one-fifth of the country’s demand and supplying millions of customers and businesses with electricity and gas.

It generates electricity with eight nuclear power stations, more than 30 wind farms, one gas and two coal power stations, as well as with combined heat and power plants.

EDF Energy is leading the UK's nuclear renaissance with the construction of a new nuclear power station at Hinkley Point C. This will provide low carbon electricity to meet 7% of UK demand. The project is already making a positive impact on the local and national economy, British industry, as well as boosting skills and education. EDF Energy also invests in a range of low carbon technologies including renewables and battery storage. It is applying research and development expertise to improve the performance of existing generation and developing the potential of new technologies.

The company provides gas and electricity for more than 5 million customer accounts and is the biggest supplier of electricity by volume in Great Britain and the largest supplier to British businesses. It offers innovative energy systems for commercial customers and digital innovation for customers at home. EDF Energy has also launched its own innovation accelerator, Blue Lab, which focuses on making customers’ lives easier.

The Better Plan is EDF Energy's framework for being a sustainable and responsible energy business and is an integral part of EDF's 2030 vision to be the efficient, responsible electricity company, and champion of low-carbon growth. The Better Plan is underpinned by comprehensive environmental and social programmes which have been recognised by a wide range of organisations.

EDF Energy is part of EDF Group, the world’s biggest electricity generator. In the UK, the company employs around 13,000 people at locations across England and Scotland.

To find out more about the UK's energy challenges visit our energy future webpages.