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February 15, 2006

Soaring wholesale costs force EDF Energy to raise prices

Due to soaring wholesale costs, EDF Energy are to increase their gas and electricity prices across all their brands; EDF Energy, London Energy, Seeboard Energy and SWEB Energy from 13 March 2006. Energylinx, the UK's largest specialist energy price comparison is already displaying the new prices and further analysis of these latest gas and electricity price increases is provided below.

Wholesale gas and electricity costs have risen by 100% and 90% respectively since January 2005. Additionally, carbon prices have risen by 380% over the same period.

EDF Energy currently have over 300,000 customers on capped or fixed rates will not be affected by today's announcement. They are protected from further rises until 2007 and 2008 respectively.

In parallel with these latest increases EDF Energy have launched a new fixed price tariff until 2008 to provide further protection for their domestic customers. This tariff is available to the first 100,000 new and existing customers who register before 30th June 2006.

60,000 EDF Energy customers on low incomes will continue to benefit from special help. Their prices are currently frozen at 2004 levels until 31st March. From 1st April, they will benefit from a new tariff for their 'most in need' customers called 'Energy Assist'. Customers on 'Energy Assist' will receive a discount of 15% for the first year, against EDF Energy standard tariffs. Based on typical household usage on dual fuel, this amounts to a saving of about £120 a year.

Derek Lickorish, Chief Operating Officer of EDF Energy Customers Branch, said: 'With soaring wholesale energy costs, we have been forced to raise our prices. However, through ownership of our own generating capacity, we have been able to limit the overall rise for all our customers. Further, we are launching a new fixed rate product for those who want reassurance for their household budget. In addition, we've also made special arrangements to continue to protect those customers who are most in need. EDF Energy is committed to remaining competitive in the energy market whilst continuing to provide excellent customer service.'

Energylinx believes that due to wholesale price increases that this latest increase in domestic gas and electricity is not unexpected. 'We believe that over the next few weeks a number of suppliers who have been contemplating increases may well implement them. Our advice is to look seriously at capped or fixed price energy deals on offer now at make the change today. It will only take a few minutes to arrange the transfer through Energylinx and the savings available today are on average £170 per annum.'

Looking specifically at the latest increases in energy prices announced by EDF Energy we see the affect on a typical customer paying by monthly direct debit:

Local Distribution Area Pre Increase Post increase increase % increase
East Midlands £705.65 £785.68 £80.03 11.34%
Eastern £692.80 £772.27 £79.47 11.47%
London £735.32 £816.76 £81.44 11.07%
Manweb £740.49 £822.13 £81.64 11.03%
Midlands £703.95 £783.94 £79.99 11.36%
Northern £695.85 £775.42 £79.57 11.43%
Norweb £692.29 £771.70 £79.41 11.47%
Scottish Hydro £742.22 £824.08 £81.86 11.03%
Scottish Power £744.65 £826.39 £81.74 10.98%
Seeboard £727.10 £808.09 £80.99 11.14%
Southern £715.92 £796.51 £80.59 11.26%
Swalec £758.22 £840.91 £82.69 10.91%
SWEB £757.72 £840.25 £82.53 10.89%
Yorkshire £697.65 £777.13 £79.48 11.39%
Average UK wide increase 11.20%
Based on standard domestic consumer consuming an average 3,300 kWhs electricity and 20,500 kWhs of gas per annum - paying by monthly direct debit. 15.02.06. Source www.energylinx.co.uk

Domestic customers can either carry out a search for free using the most comprehensive energy calculators available in the UK by logging onto any of the following links or call Energylinx on 0800 849 7077 for a personalised quote. Energylinx will then send you a detailed domestic energy quote.

Energylinx are currently the only energy price comparison service, accredited by energywatch, that actually allow you to view and transfer to every single tariff available to your home.

Gas Price Comparison

Dual Fuel Price Comparison

Electricity Price Comparison

These Energylinx calculators are unique in that they allow you to compare the prices of all energy suppliers.

Energylinx will arrange the whole transfer process for you, including notifying your existing supplier of any planned change and tracking the transfer to ensure that it occurs on time and accurately. Energylinx provides its services completely free of charge to the domestic consumer.

Posted by energylinx at February 15, 2006 09:30 PM Technorati: