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EDF hits London with £206 rise in energy bills
Jonathan Prynn, Consumer Affairs Editor25.07.08
Millions of Londoners were today hit by "eye-watering" increases in their energy bills.
French owned EDF Energy, the capital's biggest supplier, raised its gas tariff by 22 per cent and electricity by 17 per cent with immediate effect.
The increases, almost certain to be followed by other major suppliers, will add £206 to the average cost of heating and lighting a London home. The typical EDF bill for gas and electricity will be £1,210, making it the most expensive supplier in London.
Consumer groups said the move could be the first in a series of swingeing tariff increases over the autumn and winter that it is feared could add 40 per cent or more to bills in total.
Adam Scorer, campaigns director of Energywatch, said: "The scale is eye-wateringly high but the industry is expecting even more. This could be a 'pit-stop strategy' with a couple of rises over the year."
He also warned that tens of thousands of London's poorest will struggle-to keep their homes warm when the nights start drawing in. He said: "The Government's fuel poverty strategy was in tatters yesterday. From today it barely exists."
EDF Energy, where Gordon Brown's brother Andrew is a senior public relations executive, said it had no choice because of a 70 per cent surge in global energy prices since the start of the year.
EDF, owner of the former London Electricity, supplies about 1.5 million homes in London and a further 1.5 million elsewhere in the South-East. Since 2003, the price of its gas has gone up 130 per cent; its electricity prices have almost doubled. Industry commentators said the other five major energy suppliers were almost certain to follow suit in the next few weeks. One senior industry executive told the Evening Standard. "They will all went to get the price rises through before the autumn when gas and electricity consumption starts to rise again."
Ann Robinson, director of consumer policy at price comparison website uSwitch.com, said: "Today's move means we are another step closer to seeing the largest ever increase in household energy bills in one year.
"If industry insiders are correct and the average energy bill hits £1,467 by the end of 2008 then spending on energy will account for 5 per cent of the average household's net income. We are in danger of seeing household energy becoming unaffordable for growing swathes of society."
EDF said it was trying to help vulnerable customers by putting an extra 33,000 on its "social tariff ", which is at a 15 per cent discount, taking the total to 100,000.
It is launching a fixed rate tariff that allows customers to lock in the cost of bills until October 2009.
Reader views (5)
EDF Energy in the UK has increased its Gas prices so far in 2008by 37.8%, and its Electricity prices by 26.2%.
So far in 2008, EDF/GDF in France has increased its Gas prices by 9.7%. For Electricity, the French are fortunate, because domestic Electricity prices can only rise by the inflation rate (currently about 4%) until 2010, under a public service agreement with the French government (which owns 85% of EDF).
These differences are inexplicable and unacceptable.
Once the sale of British Energy is complete this week, EDF are likely to have 75% of it. Therefore 85% x 75% = 63% of the UK's nuclear power assets will be owned by a the French State - a foreign power. Crazy or what? And what happens if/when the French privatise EDF and the French government stake is bought by the Sovereign Wealth Funds - Chinese, Russian or whatever?
- Dave, London
Why did EDF choose to employ the PM's younger brother as head of media relations?
Why was this news was released on the same day as an "epic event" in the media world, i.e. the Glasgow East election result. Was it a "good day for bad news"?
How did EDF became the main sponsor of the 2012 London Olympics?
How much longer do we have to put up with this blatantly
corrupt nonsense?
- Trevor, London
The question is by how much has Electricite de France and its sister company Gaz de France put up the price of electricity and gas in their home country - the Republic of France. A friend living near Toulouse tells me that his electricity bill has increased by just 4% this year.
- Chris Davies, Stalybridge UK
Do people remember those adverts in the tory days of the Thatcher Government, you know the one. Has anyone seen Sid?
That's when all the trouble began when she sold off all the utilities, gas, electric, and of course water and denationalised the public transport system.
No wonder we have high bills because Sid wants his cake and wants to eat it as well?
These power companies should not be allowed to slap on huge price hikes like this where are the regulators I thought they had teeth, more like rubber gums.
Where is Sid now I bet on foreign soil soaking up the sun and laughing all the way to the bank and labour have done naff all about it in 11 years.
Brown mate you have lost the plot bigtime.
- John.L., Scarborough U.K.
These are indeed touch times. Perhaps it would have been better had we not let most of the utilities fall into foreign hands.
Future nuclear power will go the same way.
- Sandra, London
