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edf energy raise gas and electricity prices

NATION’S THIRST FOR ENERGY LEADS TO RECORD PRICE RISES FOR 4.6 MILLION EDF ENERGY CUSTOMERS

•Second price rise this year for EDF Energy customers, who will have seen their gas bills rise by 36% in the last five months

•19% increase in gas prices and 8% for electricity from 31st July 20063

•Fourth increase in gas prices, totalling 70%, by EDF Energy since 2005

•EDF Energy customers to pay an extra £126 a year for gas and electricity bills, taking the average annual energy bill from £845 to £9715

It’s not just the temperatures that are rising as a result of the heatwave, as EDF Energy announced today that it was putting up prices for the second time in six months for its 4.6 million residential customers from 31st July 2006. Gas bills are set to rise by 19%, while electricity prices will rise by 8%, meaning that EDF Energy customers will have seen the size of their bills increase by a massive 36% in the space of 5 months.

The recent surge in demand for electricity - as more and more people resort to air conditioning units and fans to try and beat the heat at home - led to the cost of electricity tripling in the space of a few days last week6. This is now seen by the energy companies as the perfect excuse to raise their prices well before anyone’s thoughts turn to winter, allowing them to take advantage of the nations thirst for energy in one form or another.

Ann Robinson, Director of Consumer Policy at uSwitch, comments: “While the nation is in the grip of a heatwave, now may not seem like the time to start worrying about soaring gas and electricity bills. However, the timing of this price rise means that not only will customers be hit with higher electricity bills as a result of trying to keep cool, but as soon as the temperatures start to drop and people turn up their thermostats their gas bills will soar.”

EDF Energy is raising its prices for the fourth time since January 2005, and less than five months after their last price rise took effect. Today’s announcement will affect over 4.6 million people in the UK, who will see their gas bills rise by £102 and electricity bills by £267. The average annual energy bill for EDF Energy customers is set to increase from £845 to £9718.

Robinson continues: “2006 has been a terrible year for consumers who have never switched suppliers. They will have seen their bills increase by an average of 41%, or £2699. Both ScottishPower and EDF Energy have now raised their prices twice this year, and with the exception of SSE, who have promised not to raise their prices again until 2007, the other suppliers are certain to follow suit over the coming weeks. However, the range of tariffs available has never been greater, and with prices varying by as much as 27% or £209 on average between the cheapest tariff and the most expensive10, the incentive is there for consumers to shop around.

“In spite of the current climate of endless price rises, there are tariffs on the market to suit everybody. For those who want to ensure that they are on the cheapest tariff, online deals represent the best value, at an average of 12% or £10611 cheaper than standard offline tariffs, although prices can vary by as much as £23412 a year between providers.

For those who want to insulate themselves from further increases over the next few years they can sign up to a fixed or capped product. However, consumers should be aware that this certainty often comes at a premium in terms of higher prices to begin with.”

Robinson concludes: “Today’s price rise is a further reminder that the domestic energy market rarely stands still, and that consumers need to review their current deal on a regular basis to ensure they aren’t paying any more for their energy than is necessary. Anyone who has yet to switch can still save themselves up to £170 a year by changing supplier.”

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