Consumers are being warned of more to come as EDF became the first of the Big Six energy giants to reveal it is rising its prices following the latest price cap announcement from Ofgem.
Default tariff customers will typically see dual-fuel bill increase 12 per cent to £1,277.
The price cap - set by the energy regulator - will add £139 to the average bill for 11m households on their suppliers" default tariff from October. It is the largest increase since the introduction of price caps on 2019 and has been blamed on a rise in wholesale energy prices as well as suppliers trying to recoup costs after customers missed payments during the pandemic.
The price rise has come just 11 days after the regulator Ofgem hiked the price cap by the biggest increase yet.
In 2019, then Prime Mnister Theresa May insisted that the cap "provided protection to 11m households and energy suppliers will no longer be able to rip off customers on poor value tariffs".
The sharp 12% rise, which will impact half the population, was said to be driven by a surge of more than 50% in wholesale fuel costs over the last six months with gas prices hitting a record high as global economies recover from the COVID-19 crisis, according to Ofgem.
To combat the rising costs, EDF has encouraged its default tariff customers to switch to a fixed deal which are typically much better value.
Richard Neudegg, head of regulation at the energy price comparison site Uswitch.com said: “Ofgem’s latest increase to the energy price cap has fired the starting gun on suppliers announcing bill hikes.
“EDF is first out of the gate, confirming that its default tariff customers will see bills increase to £1,277 on average, up from £1,138.
“We expect to see more of these announcements in the coming days and weeks, but there’s no reason why people on standard plans should wait helplessly for their bills to soar.
“This latest price cap hike will officially come into effect on October 1st, but there are plenty of fixed deals available now that can protect households from market volatility.” Campaigners have also said the price cap increase came "at the worst possible time" and warned it will push an extra 488,000 households into fuel poverty, with more than four million people already estimated to be behind on their household bills.
It coincides with the ending of the job support furlough scheme and the temporary £20-a-week boost to benefits.
Philippe Commaret, managing director of customers at EDF, said: "We know a price rise is never welcome, especially in tough times.
"In 2020, prices for our standard variable customers fell by an average of £100 a year, and we"ll cut prices again as soon as we"re able.
"As Ofgem has explained, it is global gas prices that have caused the unprecedented increase in wholesale energy costs and as a sustainable, long-term business we must reflect the costs we face.
"We will be directing financial assistance to those most in need through our £1.9million support fund, helping customers reduce their bills, manage their debt and even helping with costs for things like more energy efficient white goods.
"Customers on tariffs that are due to change in October will be written to, reminding them to check that they are on the best tariff for them."
First introduced on January 1, 2019, the energy price cap set a limit on a unit price of energy and a maximum standing charge. This meant energy suppliers had to charge consumers a price either at the level of or below the cap.
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