In a world where many property owners already lament the prices of energy, 2017 could represent a tough period for utility bills. In March, EDF Energy have announced that they will be raising their prices by around 8.4%, alongside the other “big” energy providers who are expected to match the hike.
For householders, this means that it might be time to start comparison shopping. Experts are currently advising customers with access to standard tariffs to lock into cheaper deals while they still have the chance.
EDF, a French-owned business which signed a deal for £18bn in September agreeing to build the Hinkley Point Nuclear plant, began by saying that they would cut their gas prices by 5.2%. However, they claim that the rising costs of energy have forced their hand in regards to the electricity price hike.
What Does This Mean for Consumers?
If you’re an EDF customer with access to both gas, and electricity, the latest price raise should see a boost in your bills of around 1.2%. That means that many customers will be paying an average of around £1,082 a year for their energy. However, pre-payment customers that use both utilities with EDF will still have the opportunity to pay 5.1% less after the March hike.
Are you an EDF customer? Contact EDF here.
Since the wholesale prices of energy have been driven up by around a third since spring 2014, many belief that EDF will only be one of the first companies to start raising their prices. There are even some concerns that other smaller companies could begin to fail, leaving the six largest energy companies in the perfect position to raise their prices.
Though some believe that the average cost-raise will fall at around 5% for other companies, experts urge householders to see this development as evidence that a price-hike is coming. In other words, if you can get on a low-cost fixed rate deal, then you absolutely should.
The Controversy Surrounding the Price Hike
Although EDF claims that around 1.5 million customers won’t be affected by the price changes, thanks to their position on fixed-rate deals, and has noted that they would write to people on standard tariffs to provide details of further deals, many remain unhappy. Critics claim that the price hikes implemented by EDF are unnecessary, thanks to the fact that EDF owns all the nuclear power stations in the UK. Simply put – some believe that the wholesale price increases shouldn’t affect EDF at all.
Only one thing is for sure – no matter who your energy provider is, you’re likely to start paying more this year.