EDF has issued a £169 warning to customers and admitted it “isn’t ideal”. The energy supplier, which is rivalled by OVO, Octopus, British Gas, E ON Next and more, has spoken out over the rise in energy bills thanks to the new price cap from Ofgem.
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 – a £169 accumulative hike. EDF said: “Energy costs are set to change starting 1 January 2025.
“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.”
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The price cap will rise 1.2% from £1,717 to £1,738. The annual price is based on a typical household that uses gas and electricity and pays by Direct Debit. If you’re on one of EDF’s variable tariffs, your prices will change automatically on January 1. You don’t need to do anything or call the supplier.
It warns: “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. Prepayment customers should see the change in their electricity prices when they top up after 1 January. Gas prices could update on prepayment customers’ meters any time from today (after a top-up), but they won’t activate until 1 January 2025.”
In its FAQ, it added: “Does this mean I’ll only pay £1,738 a year? No. The amount of £1,738 is based on Ofgem’s typical usage value, which Ofgem use when referring to the price cap that sets the maximum unit rate energy suppliers can charge. However, the total amount you spend on gas and electricity is determined by your energy consumption and the daily standing rates in your region.
“The daily standing rate is the amount you pay daily, regardless of how much energy you use. It covers the cost of supplying gas and electricity to your property. You can think of it as a line rental for your energy.”