EDFEnergy will be implementing a price increase of 2.6% to some of itsregional electricity tariffs in a number of areas* affecting a minorityof its electricity customers. This follows a review of its electricityprices after an average rise of 16% in distribution and transmissioncostsi since its last electricity price change in March 2009.Distribution and transmissions costs currently represent around a fifthof a customer electricity bill [2].
A typicalelectricity customer affected by this price adjustment will pay lessthan £1 extra a month [3]. EDF Energy understands that in thesedifficult economic times, any increase in prices can have an effect onhousehold budgets. Thawhy the company is offering Standard tariffcustomers Energy Discount Plan, a discounted product that will enabletmaintain prices at today's levels, in advance of the new prices cominginto effect [4].
These new prices will be effective from 1October 2010 and we will be writing to all customers impacted over thecoming weeks. Affected customers on our discounted Energy Assistproduct, available to households on low incomes, will receive anadditional credit of £12 this year [5]. Our fixed price products andgas prices are not impacted by today's announcement.
EDF Energyis proud of its legacy of low prices, having cut prices three timessince March 2009. Over the past two years, EDF Energy is the only majorsupplier to have consistently ranked in the top 2 cheapest suppliersfor Standard Dual Fuel based on a national average of standard prices[6]. EDF Energy remains cheaper than the former incumbent electricitysupplier for Standard electricity tariffs on all payment methods in allbut one area even after this price change [7].
Martin Lawrence,Managing Director, Energy Sourcing and Customer Supply at EDF Energy,said: "EDF Energy has made every effort to minimise the size and impactof this price increase, which is why we are offering Standard tariffcustomers Energy Discount Plan so they can maintain their currentprices [5].
The rise in transmission and distribution costs hasimpacted the cost of supplying energy to our customers. We have beenabsorbing these costs for many months, but we now have to pass on someof the resulting rise to our customers.
EDF Energy is unique inhaving been among the cheapest two major suppliers for Standard DualFuel tariffs consistently over the last two years, which reflects ourenduring commitment to offering competitive prices to our customers".
Aswell as offering competitive prices, EDF Energy continues to advise itscustomers on how to save money by providing them practical andeffective ways to use their energy more efficiently and cut theirenergy use.
For affected customers paying by Direct Debit, thischange in prices will be considered in the next review after itseffective date. Anyone wanting to discuss their bills, should call EDFEnergy customer services on our freephone number 0800 096 9000 [8] orclick to www.edfenergy.com for more information.
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*Customerswith standard meters are affected in the following areas: Eastern, EastMidlands, West Midlands, North East, North West, North Wales, SouthWales, North Scotland, South Scotland, Southern and Yorkshire. Onlystandard Economy 7 meter customers in London, South East and South Westare also impacted by this price change.
[1] Change indistribution and transmission costs when comparing the April '09forecast and October '10 forecast for standard meters averaged acrossall 14 regions
[2] Transmission and distribution represent 22.8% ofan EDF Energy electricity customer bill. Based on a standard meterelectricity customer using typical consumption averaged across all 14regions and the three main payment types (Credit, Direct Debit andprepayment).
[3] Maximum annual increase for a standard electricitymeter customer at typical consumption on any of the 3 main paymentmethods (Credit, Direct Debit and Prepayment) is £11.44 (customerpaying by credit in South Wales). Average annual increase is £10.82.
[4]Energy Discount Plan v3 is guaranteed to be 2.5% cheaper than ourStandard tariff prices for electricity and gas until September 2011.Customers may be charged an Early Termination Fee of £25 per fuel ifthey leave the tariff before 30 September 2011. For further detailsplease visit www.savetodaysavetomorrow.com
[5] This one-off £12credit per household will be applied directly to the account forimpacted Energy Assist customers paying by Direct Debit or Credit inOctober. Prepayment customers will receive their credit via a Paypoint.This credit is greater than the average annual increase for a typicalcustomer impacted by this price change (£10.82).
[6] Based on astandard meter Dual Fuel customer using typical consumption averagedacross all 14 regions and the 3 main payment types (Credit, DirectDebit and prepayment) on a monthly basis since 1 September 2008
[7]EDF Energy is cheaper at typical consumption for single fuelelectricity customers on a standard meter for the 3 main paymentmethods (Credit, Direct Debit and prepayment) when compared to theformer electricity supplier of every area affected except Southern. EDFEnergy holds the supply licenses of the former public-owned electricitysuppliers in the South West, London and South East.
[8] Calls may be monitored and recorded.
Note to editors
EDFEnergy is one of the UK's largest energy companies. The new EDF Energyis the UK's largest producer of electricity and the largest generatorof low carbon electricity in Britain. Through Our Climate and SocialCommitments we have launched the biggest environmental and socialpackages of any UK energy company. We produce around one-fifth of thenation's electricity from our nuclear, coal and gas power stations, aswell as combined heat and power plants and wind farms. We provide powerto a quarter of the UK's population via our electricity distributionnetworks and supply gas and electricity to over 5.5 million businessand residential customers.
The company is a key player in nationalinfrastructure projects including management of private electricitynetworks serving four London airports and the Channel Tunnel Rail Link,the country's first major new railway in 100 years and has publishedplans to build up to four new nuclear power stations in the UK. EDFEnergy and British Energy together employ nearly 20,000 people atlocations across the UK. EDF Energy is part of EDF Group, one ofEurope's largest power companies. EDF is the official energy utilitiespartner and sustainability partner of the London 2012 Olympic andParalympic Games.
Contact(s)
EDF Energy press office
Rajan Lakhani + 44 020 7752 2196
Phillippa Coates + 44 020 7752 2266
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