EDF Energy has become the second big six supplier this week to raise the price of its standard variable tariff. The company announced its SVT will rise by 1.4 per cent for dual fuel customers from 7 June, representing an annual rise of £16 for direct debit customers.
The change is due to an increase in the standing charge for electricity of 2.7 per cent. The company said this reflects the increase in some of the fixed costs associated with supplying electricity.
The company will further increase the charges for customers choosing to pay by cash or cheque by £6 per fuel per year, to be “closer to the real cost of serving these customers”. This change will apply to standard variable tariffs and future fixed tariffs.
EDF Energy said it continues to “face pressures”, as energy costs, policy costs and the costs associated with installing smart meters all having risen significantly since last summer.
Commenting on the rise, the company’s 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 7 June, affecting around 40 per cent 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.”
On Tuesday (10 April), British Gas said it will raise its SVT by an average of 5.5 per cent from 29 May. It blamed the hike on rising wholesale and policy costs, including the smart meter rollout and schemes to reduce carbon emissions.
Alex Neill, Which? managing director of home products and services, said: “The second price hike from a big energy supplier in days will leave customers questioning why their bills are rising again when they’re not seeing improvements in the service they’re receiving.
“Before the energy price cap comes into effect later this year, customers still stuck on poor value standard tariffs should look to switch now as they could potentially save up to £359 a year.”