Inflation hammer blow as firm pushes up price of gas 15.4pc

Energy firm EDF has announced a 15.4 per cent jump in gas tariffs and a 4.5 per increase in average electricity tariffs. The changes will come into effect on November 10 are said to reflect rising wholesale energy, network and other costs.

EDF’s decision means that all of the big six power suppliers have now raised their tariffs for the winter months ahead.

The chief executive of EDF Energy, Vincent de Rivaz, said the firm had been able to delay the decision longer than its rivals because of its sourcing of nuclear energy, but added that it must “reluctantly” now pass some of these higher costs through to consumers.

Mr Rivaz claimed the firm would welcome the creation of a Competition Commission Inquiry to tackle customers’ suspicions about increasing utility bill prices.

EDF claimed the higher charges will add about 33p a day to a dual-fuel bill, while the annual cost of a standard dual fuel bill paid for by direct debit will rise to £1,165 against £1,051 previously.

The firm added that even with higher charges it will be the cheapest major supplier of dual fuel and claimed that by delaying its increase by three months, customers could have saved £30 compared to Scottish Power, the first of the big six to raise tariffs at the beginning of last month.

Mr Rivaz added: “Unlike some other suppliers we have been able to give protection to our customers, particularly for their electricity consumption, because of our choice to invest in low carbon nuclear generation, which enjoys stable costs compared to gas and coal and has had a strong performance this year.”

Mr Rivaz also claimed the introduction of a Competition Commission inquiry into pricing could help clear up some of the “widespread lack of understanding and suspicion of the industry as a whole, among the public, customers in general, politicians, regulators and others”.

He added: “If a Competition Commission inquiry is necessary to build this trust, then it is a step that should be taken.

“We would welcome the opportunity to explore all the issues fully and openly.

“As a fair company, we have nothing to hide.”

The chief executive of watchdog Consumer Focus, Mike O’Connor, said: “The fact that EDF Energy has made smaller and later hikes than other suppliers is welcome, but it won’t soften the blow on those who are struggling on tight household budgets.”

He did welcome, however, EDF’s acknowledgement of public distrust of energy firms and praised its willingness to face a Competition Commission inquiry.

“Regulator Ofgem wants the suppliers to simplify tariffs and to auction up to 20 per cent of their power generation to make it easier for new competitors to enter the market.

“If energy companies try to frustrate these reforms, Ofgem has made it clear we will refer the issue to the Competition Commission,” an Ofgem spokesman said.

Rising utility bills helped push consumer price inflation up to 4.5 per cent in August.

They are forecast to send it even higher over the next two months as all of the recently announced increases are felt by householders.

Scottish Power put its gas tariffs up by 19 per cent and its electricity charges by 10 per cent from August 1, while British Gas increased gas bills by 18 per cent and electricity by 16 per cent from August 18.

This week, Scottish and Southern Energy raised electricity by 11 per cent and gas by 18 per cent while E.ON increased its electricity prices by 11.4 per cent and gas by 18.1 per cent.

On October 1, Npower is raising gas prices by 15.7 per cent and electricity by 7.2 per cent.

According to Consumer Focus, EDF will be the cheapest dual-fuel supplier when paying by direct debit once all of the increases go through.

The next cheapest provider is Npower at £1,184, with British Gas will be the most expensive at £1,219.