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EDF Energy
EDF Energy announces changes to standard variable tariffs



April 13, 2017

EDF Energy is announcing changes to its standard variable electricity and gas tariffs, effective from June 21st. Fifty-five per cent of EDF Energy customers who have chosen fixed deals or have prepayment meters are unaffected. EDF Energy is also launching a new three year fixed deal to give customers a longer alternative to variable prices.

EDF Energy's standard variable dual fuel direct debit tariff will increase by 7.2% to £1,160 a year (+£78). The standard variable gas tariff will increase by 5.5% (+£29), while the standard electricity tariff will increase by 9% (+£49). EDF Energy announced price changes in December 2016, the combined effect of BOTH changes on a dual fuel direct debit customer is 8.5% (+£91)[2]

EDF Energy's overall increase is less than the recent increases by a number of other major and new suppliers. The total change to EDF Energy's standard variable dual fuel tariff over the last three years is +4.6%.

Today's (4/12) announcement will still leave EDF Energy with the lowest variable gas tariff of all major suppliers[3]. The gas increase follows three gas price reductions over the last two years. Deferring the gas price rise until the summer will have saved EDF Energy variable gas tariff customers £16m since January - the equivalent of £20 per household[4].

EDF Energy, in common with all suppliers, has faced a range of rising costs for some time, in both wholesale energy and non-wholesale energy costs and obligations. As a responsible and long term business, EDF Energy seeks to make a fair margin in supplying customers with gas and electricity.  This fair margin allows the company to invest for the long term, in particular in good service, innovation and smart metering. It also supports initiatives to get more customers to fix their prices. For example, EDF Energy has been given a five star rating for having fewer than 50 complaints to third parties per 100,000 customers from the Citizens Advice[5]. At the same time EDF Energy has driven efficiencies in its own operations to cut all the costs under its control.

EDF Energy has done more than many suppliers to encourage customers to choose their energy tariff with 42% of customers having selected fixed tariffs - rising to almost 60% for vulnerable customers. EDF Energy is able to give customers better prices when they make a commitment to fixed deals - currently a saving worth around 10%.

To encourage even more customers to actively choose their tariff, EDF Energy is launching a new fixed three year tariff, at £1,155 until April 2020 with a year's free boiler insurance worth £130[6]. This new tariff, with our popular boiler insurance for free, provides a long-term option alongside the existing short term fixed tariff. EDF Energy will also:

  • Contact all customers on standard variable tariff and offer to review their tariff, payment method and give advice on energy efficiency measures
  • Protect around 67,000 of our vulnerable customers on variable tariffs from the impact of the price increase with a one-off automatic rebate of £100[7] for a dual fuel customer. They will be encouraged to move to a fixed deal in the next year
  • Donate £1m to the independently run EDF Energy Trust Fund to provide additional support for customers who are facing hardship
  • Write to 680,000 customers not paying by direct debit making it easy for them to sign up, saving 6.4 % or £80 a year[8].

EDF Energy CEO 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".

EDF Energy Managing Director of Customers Beatrice Bigois said: "The majority of our customers will not be affected by today's announcement and we have delayed this increase until the summer when energy consumption is lowest. We are encouraging those on variable tariffs to join the one and half million who have already fixed their prices. We are also providing extra support for vulnerable customers on variable tariffs with a £100 rebate."


[1] Based on a dual fuel direct debit bill at typical consumption averaged across all regions.  Typical usage defined by Ofgem is 3,100kWh standard electricity and 12,500kWh gas.

[2] Based on a dual fuel direct debit bill at typical consumption averaged across all regions.  Typical usage defined by Ofgem is 3,100kWh standard electricity and 12,500kWh gas.

[3]Based on the average gas price across all regions at Ofgem typical consumption of British Gas, EDF Energy, E.on, npower, Scottish Power and SSE.  Typical usage defined by Ofgem 12,500kWh gas.

[4] Based on the average saving of and EDF Energy gas customer between January 1 and June 19 2017

[5] Based on the Citizens Advice domestic energy suppliers' customer service rating for October to December 2016

[6] Available to eligible customers only, terms and conditions apply

[7] Also £100 for an Electricity only customer with no mains Gas. £50 for single fuel customers

[8] £80 saving based on a dual fuel bill at typical consumption averaged across all regions.  Typical usage defined by Ofgem is 3,100kWh standard electricity and 12,500kWh gas.

EDF Energy

EDF Energy is the UK's largest producer of low-carbon electricity, meeting around one-fifth of the country's demand and supplying millions of customers and businesses with electricity and gas.

It generates electricity with eight nuclear power stations, more than 30 wind farms, one gas and two coal power stations, as well as with combined heat and power plants.

EDF Energy is leading the UK's nuclear renaissance with the construction of a new nuclear power station at Hinkley Point C. This will provide low carbon electricity to meet 7% of UK demand. The project is already making a positive impact on the local and national economy, British industry, as well as boosting skills and education. EDF Energy also invests in a range of low carbon technologies including renewables and battery storage. It is applying research and development expertise to improve the performance of existing generation and developing the potential of new technologies.

The company provides gas and electricity for more than 5 million customer accounts and is the biggest supplier of electricity by volume in Great Britain and the largest supplier to British businesses. It offers innovative energy systems for commercial customers and digital innovation for customers at home. EDF Energy has also launched its own innovation accelerator, Blue Lab, which focuses on making customers' lives easier.

Through its Better Energy Ambitions, EDF Energy has developed comprehensive environmental and social programmes which have been recognised by a wide range of organisations.

EDF Energy is part of EDF Group, the world's biggest electricity generator. In the UK, the company employs around 13,000 people at locations across England and Scotland.

To find out more about the UK's energy challenges visit: www.edfenergy.com/energyfuture/

For more information:

Organization:
EDF Energy
http://newsroom.edfenergy.com

Contact:
Media Relations Team
EDF Energy Media
Tel: 01452 652233
E-mail: media@edfenergy.com


Link http://www.electricenergyonline.com/detail_news.php?ID=632243
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