Cost of Electricity UK Increases – Again
Have you seen the latest news regarding the cost of electricity UK? Right after we reported that all of the Big Six recently increased their energy prices, EDF Energy has announced another price hike.
The energy giant plans to increase standard variable tariff (SVT) prices on 31 August by 6%:
- The gas tariff will increase by 6%
- The electricity tariff will increase by 6.1%
This amounts to £1,228 a year, adding £70 to the typical UK energy bill.
Why is the cost of electricity UK increasing?
EDF cite ‘significant increases in the cost of wholesale energy since the start of the year’ for the energy price hike. The firm says that it has seen a 13% increase in wholesale costs since April. One of the reasons for this is the high demand during the winter storm period. EDF also says that that raw energy costs in the form of gas and oil have shot up.
Béatrice Bigois, EDF Energy managing director of customers, said: “We know that another price rise will not be welcome, and we had hoped that our limited changes announced in April would be enough. However, energy costs have continued to rise significantly and despite our best efforts to absorb some of these by reducing the costs within our control – sadly we can no longer sustain this.”
Who is affected by the increased cost of electricity?
All EDF Energy customers on standard variable customers – currently about 40% of its total customers.
Customers on a prepayment tariff, fixed price tariff, or the safeguard tariff for vulnerable customers will not be affected by the planned increase.
What about the price cap?
To combat the rising cost of electricity in the UK, the government is planning a price cap on default tariffs (such as SVTs). The price cap is set to take effect this winter.
How to avoid energy price hikes
- Switch suppliers to change to a cheaper tariff
- Choose a fixed price energy tariff
- Let the energy experts at Smarter Business do the legwork on your behalf, at no additional cost to you!