Energy bills soar - Again!

February 23rd, 2006

OVER 4.7 MILLION TO FEEL THE HEAT AS ENERGY BILLS SOAR… AGAIN
• Second price rise announcement in less than a week as EDF Energy follows ScottishPower
• 14.7% increase in gas prices and 4.7% for electricity from 13th March 2006
• Fifth increase in gas prices, totalling 60%, by EDF Energy since 2004
• Customers to pay an extra £84 a year for energy bills, taking the average annual energy bill from £778 to £862

EDF Energy has today become the second major supplier to announce that it is increasing its prices this year, with rises of 14.7% for gas and 4.7% for electricity, according to independent switching and comparison service uSwitch.com. This comes after EDF Energy increased their prices for gas by 25% and for electricity by 19% in 2005.
EDF Energy, whose brands include London Energy, Seeboard Energy and SWEB Energy, is raising its prices for the fifth time since January 2004, and just over six months after their last price rise announcement. Today’s announcement will affect over 4.7 million people in the UK, who will see their gas bills rise by £69 and electricity bills by £15. The average annual energy bill for EDF Energy customers is set to increase from £778 to £862.
The increases will come into effect on 13th March 2006.
However, 300,000 EDF Energy customers who are already on capped or fixed plans will be unaffected by the increases. In addition, the internet-based tariff is to remain unchanged, and will continue to be one of the most competitive deals available from any of the ‘Big 6’ suppliers
Alan Tattersall, Director of Home Services at uSwitch.com, comments: “Last year EDF Energy imposed on its customers gas price rises of nearly 25%. These latest price rises ought to act as an incentive to customers to review their current deals.
“For people who want to be confident that the price they pay for their energy will not change, there are a number of capped and fixed products available at the moment which run until 2007/2008.
“Consumers should look at the small print and shop around using an independent comparison service to find a deal that is best for their particular needs.”
Speaking about the impact of the latest price increases on vulnerable customers, Tattersall continues:
“It is the most vulnerable customers that will be hit the hardest by this recent flurry of price increases. There are already 800,000 pensioners living below the poverty line, and we estimate that 50,000 households could be pushed into fuel poverty as a result of today’s announcement. Those people who are paying over 10% of their income towards energy bills are now in serious danger.
“The message for people who are struggling to pay their gas or electricity bills couldn’t be simpler: review your energy supplier to ensure that you are getting the best possible deal, and can therefore stay warm for longer; and speak to your supplier to find out about any additional benefits that they offer to vulnerable customers.
“Anyone who has yet to switch can still save themselves up to £170 a year by changing supplier.”
For more information visit uSwitch.com

Entry Filed under: Finance Info