Energy supplier EDF has announced that it is raising the price of electricity for the second time this year for customers on standard tariffs.
Having increased electricity prices by 8.4 per cent on 1 March, the company has revealed that EDF customers will see electricity prices increase by nine per cent and gas prices go up by 5.5 per cent from 21 June.
The cost increase translates to the average dual-fuel customer paying an extra £78 a year, bringing the annual bill to £1,160. The increases, taken together, means that 1.5 million customers will pay 18.1 per cent more for their electricity this year.
Vincent de Rivaz said: “I know that price rises are never welcome, but the industry is facing significant cost increases. To be a sustainable and responsible business, we aim to make a fair margin in supplying customers. This fair margin allows us to invest for the long term, in particular in good service, innovation and smart metering. It also allows us to help more customers choose the right tariff for them. We have cut all the costs under our control without compromising our customer service.
“We accept that the government, regulators and consumers groups have concerns about the way markets work for customers, particularly the energy market. We will continue to work with them constructively for the benefit of customers”.
Dermot Nolan, chief executive of energy regulator Ofgem, said: "EDF's second price rise in four months, when there has not been a dramatic rise in wholesale energy prices since it last put up prices, is difficult to justify and is further evidence that the energy market is not working in all consumers' interests."