The French-owned energy giant, EDF, has kicked off proceedings by announcing an 8.4% electricity price hike which will take effect from March 2017. Although, there is no formal announcement from the other “Big Six” energy suppliers they are expected to follow suit.
The energy giant blames its decision to increase the electricity tariff on the rising cost of wholesale energy. The company had signed an £18bn deal in September for the Hinkley Point nuclear plant and announced that it would reduce its gas prices by 5.2%. Nonetheless, FreePriceCompare advise the customers of EDF Energy to switch to a cheap fixed-price deal while they are still available.
Once the changes are implemented the dual fuel customers of EDF Energy would face a rise of 1.2% in their energy bills, which would amount to an average bill of £1,082 a year. Those with a prepayment meter would pay £1,081 a year which is still 5.1% less.
According to energy market reports, there has been a one-third rise in the wholesale energy prices and companies like GB Energy have collapsed due to the same pressure. The company which had 160,000 customers blamed the increase in prices as the reason for its collapse.
Energy experts predict a rise of around 5% across all suppliers and therefore urge customers to find a low-cost fixed tariff while they are still available.
EDF Energy defended their stance by saying that 1.5 million customers which are on fixed rate deals would not face any issues with the price rise. In addition, they would also inform their standard variable tariff customers about its best offers which they can choose to reduce their energy bills.
The managing director at EDF, Beatrice Bigois, expressed her views by saying that “Many industry commentators have said that prices charged by energy suppliers will rise after the winter. We are being open about the fact our electricity prices will go up after our price freeze. But we also know it is right to pass on to loyal customers the fall in gas costs that energy suppliers have seen over recent months.”
However, critics have a different opinion, they say that there are many suppliers facing greater pressure from wholesale price rises and yet have not increased their energy prices.
Energy experts suggest that due to the increase in wholesale prices there has been a £126 rise in the cheapest deals in the last two months. Nonetheless, this is not good news and customers should lock into the company’s cheapest deals as more companies are likely to follow the trend started by EDF.
FreePriceCompare founder Mr. Shay Ramani expressed his views on the topic by saying that “This should be an eye opener for all customers and they should urgently find the cheapest fixed deals available to them. There is no point waiting as you can be trapped into higher prices if you fail to react”.
To conclude, if you are an EDF customer or even a standard variable tariff customer with any supplier, you should seek out the cheapest fixed energy tariff available. Whilst EDF is the first to announce a price rise, they probably aren’t going to be the last.
If you want to switch to a supplier that provides lower tariffs and cheaper energy deals then check our website https://freepricecompare.com/home-energy/. We compare prices against all suppliers and are totally independent and impartial. For more information on how much you can save from your energy bills, you can also contact our friendly energy team on 02034757476.