EDF becomes second supplier to hike tariff to new cap level

EDF Energy has become the second supplier to increase its standard variable tariff (SVT) to the new level of the price cap following Eon on Monday (11 February).

The typical yearly bill for the company’s 1.3 million customers will rise by 10 per cent from 1 April.

A spokesperson for EDF Energy said:“Ofgem’s announcement confirmed that costs increased significantly last year and this was further evidenced by the collapse of several small suppliers.

“As a responsible and long-term business, it is important that we reflect the costs we’re facing. These changes for standard variable tariffs will not come into effect until 1 April and we will write to customers before then, highlighting the other tariffs available that they can switch to.”

Rik Smith, energy expert at Uswitch.com, commented: “EDF Energy is the second of the big six suppliers to increase their prices, and we wouldn’t be surprised to see a domino effect with other energy companies following suit.

“EDF Energy customers will see their bills rocket by £118 a year on average from 1 April, and their standard tariff will be £286 more expensive than the cheapest deal available today.

“But some households on standard tariffs will be hit harder than the average if their supplier prices up to the cap, which could push their bills to the edge of affordability.

“People who are already struggling with their bills are the ones who will suffer most if they are conned by the idea that the price cap represents a ‘fair’ deal.”

Last Thursday (7 February) Ofgem announced the price cap on default tariffs will rise by £117 to £1,254 a year. The new cap will come into effect on 1 April and will be reviewed again later in 2019.

The regulator said £74 of the increase is due to higher wholesale energy costs, which make up more than a third (£521) of the overall cap.