New energy price hike

Campaigners have warned of a "hammer blow" to consumers as energy supplier EDF increased its electricity prices by 17% and gas prices by 22%.

The company blamed record wholesale energy costs for the increases, which come into effect immediately.

The French firm, one of Britain's biggest energy suppliers with 5.1 million customers, said typical dual fuel bills would increase by £3.97 a week - or just over £200 a year.

Energy companies have been widely expected to raise utility bills this summer as wholesale prices have increased. An independent report last week commissioned by British Gas owner Centrica warned that prices could increase by 70%. British Gas said its pricing had not changed.

Eva Eisenschimmel, chief operating officer of EDF Energy customers branch, said: "Record world oil prices have continued to drive up wholesale gas prices. Alongside unprecedented rises in wholesale coal and electricity costs, this has impacted hugely on the cost of supplying energy to our customers."

The company said wholesale energy prices had increased by 70% for coal, 63% for gas and 47% for electricity since it last increased its prices in January.

Ms Eisenschimmel said: "We have been absorbing some of these costs in recent months, but we now have to pass on some of the resulting rise in wholesale costs to our customers. While the rise in wholesale prices is out of our control, we have been doing everything possible to keep our own costs in check."

The company outlined a range of measures to help struggling customers, adding: "In this difficult economic climate we are very concerned by the impact any price rise will have, especially for those on low incomes."

Adam Scorer, director of campaigns for watchdog Energywatch, said: "Consumers have been bracing themselves for price hikes but the scale of these rises will be a hammer blow to many. The blame is being laid squarely on rising oil prices and the knock-on effect it has on wholesale gas prices. The indexation of the price of these two entirely separate commodities must be explored and if the link is found to be artificial and unfair then action needs to be take to see what remedies can be implemented.

"With 4.5 million British households already fuel poor the Government's fuel poverty strategy is being shredded by continuing price hikes. If, as is likely, EDF's fellow energy suppliers follow suit then fuel poverty will be visiting more than one million new households and the number of pensioners and families in extreme fuel poverty will soar."

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