Energy company price hikes – the data
Today looks like it may mark the end of a month of energy bill price increase announcements. EDF this morning announced its intention to raise prices, and a Daily Telegraph front page reports that E.On is set to follow suit.
For the past four weeks, the so-called big six have been embroiled in almost constant conflict with politicians and the media over price hikes and industry profits.
Energy Secretary, Ed Davey, today told an annual energy industry gathering that trust between the companies and the public was “breaking down”. Industry leaders must better demonstrate their public value, he said, or face continued criticism.
Adding £s to your bills
According to today’s Telegraph front page, all of the big six energy companies have now committed to price rises this year, following similar moves last year.
German utility E.ON haven’t officially hiked prices yet, but if the Telegraph is correct it won’t be long. E.ON customers can expect to pay an extra £90 a year on an average dual fuel bill, the Telegraph reports today. E.ON’s price hike means its average annual dual fuel bill has reached £1,425.
SSE was the first to hike prices, kicking off a month’s worth of household energy bill headlines. RWE npower, Scottish Power and British Gas all followed suit.
At the time EDF was announcing a new nuclear deal with the government. EDF’s price rise, announced today, is smaller – customers will see bills rise by £49 a year to an average annual bill of £1,300 from January next year.
Image - energy bill hike £ 2 (note)
*Only npower’s bill estimate is based on Ofgem’s new average consumptions standards – see note at the bottom.
Source: Energy company press releases, and Guardian and Telegraph reports.
Percentage change
EDF’s 2013 price rise is notably smaller than other companies – but follows a larger increase 12 months ago.
Image - energy bill hikes percentage (note)
Source: Energy company press releases, and Guardian and Telegraph reports. See note at bottom for average household consumption rates.
On average, EDF customers can on average expect to only pay 4 per cent more for their energy in the coming 12 months compared to a year previously.
But the company has said its smaller rise is contingent on the government changing the way it funds some energy efficiency programs. EDF says it could further increase prices if the government doesn’t go ahead with reforming the energy companies obligation, which provides households with insulation and efficient boilers.
In contrast, npower raised prices by 10.4 per cent, and British Gas almost 9 per cent.
Image - energy bill hike table (note)
Not the end
So that’s all the big six’s price hike announcements done for the next 12 months. But with SSE and British Gas expected to release their latest financial reports later this week, it’s unlikely to be the last you hear of energy bills and industry profits.