EDF has hiked its dual fuel tariff for the second time this year due to "significant" cost increases in the industry

 
Courtney Goldsmith
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Light bulbs are pictured on December 7,
EDF is the latest of the Big Six energy providers to hike prices (Source: Getty)

Sorry EDF customers - the French energy provider is set to hike its dual fuel tariff by 7.2 per cent, or £78, to £1,160 from 21 June.

The move will affect 1.5m, or about 45 per cent, of the group's customers.

The second price rise this year comes as the industry faces "significant" cost increases.

“I know that price rises are never welcome, but the industry is facing significant cost increases. To be a sustainable and responsible business, we aim to make a fair margin in supplying customers," said EDF Energy chief executive Vincent de Rivaz.

"This fair margin allows us to invest for the long term, in particular in good service, innovation and smart metering. It also allows us to help more customers choose the right tariff for them. We have cut all the costs under our control without compromising our customer service."

Read more: Here's the progress EDF has made on Hinkely Point so far

EDF's standard variable gas tariff will increase by 5.5 per cent, or £29, while the standard electricity tariff will increase by nine per cent, or £49. Together with the price changes made last December, the combined increase is 8.5 per cent, or £91.

The group also today announced a new three-year fixed deal to give customers a longer alternative to variable prices.

EDF argued its overall increase is less than the recent increases by a number of other major and new suppliers. Over the last three years, EDF's standard variable tariff has increased 4.6 per cent.

It added that deferring the gas price rise until the summer will have saved affected customers £16m since January, or £20 per household.

EDF, like other energy suppliers, has faced a range of rising costs for some time, in both wholesale energy and non-wholesale energy costs and obligations, it said.

However, Ofgem boss Dermot Nolan said the second price rise in four months comes when there has been no dramatic rise in wholesale energy prices.

"[The price hike] is difficult to justify and is further evidence that the energy market is not working in all consumers interests," Nolan said.

"We accept that the government, regulators and consumers groups have concerns about the way markets work for customers, particularly the energy market. We will continue to work with them constructively for the benefit of customers," Rivaz said.

The group's shares tumbled to an all-time low in March after it launched a €4bn (£3.4bn) capital raising to support investment programmes like the UK's Hinkley Point C nuclear project.

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