http://www.gm.tv/index.cfm?articleid=30234Save on your energy
Power price hike
Last updated: 28 July 2008
As energy giant EDF breaks ranks to announce big gas and electricity price rises - find out how to fix or cap your rate
Energy supplier EDF has increased its electricity prices by 17% and its gas prices by 22%.
The company blamed record wholesale energy costs for the increases, which come into effect immediately.
No surprise
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%.
Expert advice
GMTV's Martin Lewis said: "EDF is the first of the big six suppliers to announce a price rise. Once one provider puts its prices up, the others normally follow within five to six weeks, as they operate a herd mentality. I urge everyone to cap their tariffs at the cheapest possible rate as soon as possible.
"By that, I mean today or tomorrow and no later. You can still lock in cheap prices if you do it straight away, but cheap caps are vanishing faster than a rabbit at a greyhound track. Do remember that this is only the first round of rises; expect another round in December or January, if not earlier - this is why fixing's so important."
Tim Wolfenden, head of home services at price comparison website uSwitch.com, said: "After weeks of speculation and warnings the axe has finally fallen.
"Although EDF Energy is the first supplier to succumb to the inevitable, this is not going to be a unilateral move. Other suppliers are suffering too and aresure to follow suit over the next weeks or months.
"Online energy plans remain a good option for those who want to pay a lower price now and are happy to take their chances on the market in the future.
"However, fixed or capped price plans could be a lifeline for those who are more vulnerable to price rises. These plans carry a premium, but if you've never switched before you will probably still save money immediately by moving to one.
"However, the best fixed and capped deals are disappearing fast so consumers need to act quickly."
What is a capped tariff?
A capped tariff is where the rate per unit of gas and electricity is fixed for a set period of time; usually a year or two - a bit like a fixed rate mortgage. Yet obviously the overall cost you pay isn't fixed, as it depends on energy usage. Most energy comparison services allow you to compare capped rates.
Login
Register
FAQ
Search
