EDF Energy issues New Year’s Day price warning as it admits ‘this isn’ | Personal Finance | Finance
EDF Energy has issued a price warning to customers starting from New Year’s Day.
The energy firm has updated its advice to its customers over the Ofgem price cap, which is due to rise again on New Year’s Day, the second price hike in a row.
The firm admitted ‘we know this isn’t ideal news’ as it revealed that its prices will be increasing from January 1 for its customers who are not on a fixed tariff.
It comes after Ofgem announced another price rise of 1.2 percent for all energy firms, the second in a row after a 10 percent price increase in October.
It means the price of the standard variable tariff will rise from £1,717 a year for a typical use customer to £1,738, another £21 increase on top of a £148 rise in October.
While gas and electricity suppliers don’t have to raise their prices, all the energy firms will raise the price of their standard variable to match the price cap.
Therefore, in order to get a better deal, customers usually look at fixing on a tariff which is locked in for a certain period of time and in fact EDF right now offers fixes which are cheaper than the price cap and will avoid the January price increase entirely.
EDF Energy announced in its message to customers: “Ofgem is changing the energy price cap for customers not on fixed deals. Unfortunately, this means our prices will also change starting 1 January 2025.
“We know this isn’t ideal news, and we’re here to support you however possible. Please visit our help centre for advice and support on managing bills and payments.
“The price cap will rise by 1.2% from £1,717 to £1,738. The annual price is based on a typical household (1) that uses gas and electricity and pays by Direct Debit
“If you’re on one of our variable tariffs, your prices will change automatically on January 1. You don’t need to do anything or call us
“Please do not change your Direct Debit payments, as we review them regularly to keep up with any changes in the price cap. Changing your payment before a review could result in debt
“Our range of fixed-term tracker tariffs includes EDF Ensure, Ensure Tracker, Simply Fixed Direct 1Yr Jan26, EVolve, Heat Pump Tracker, Empower, and Empower Exclusive.”
