EDF Energy leads energy price hikes

By Daniel Fineren

LONDON (Reuters) - EDF Energy on Friday increased household power and gas prices for the second time this year, while its competitors said they had no immediate plans to hike rates in response to soaring wholesale costs.

The French-owned company increased its power prices by 17 percent and gas prices for retail customers by 22 percent with immediate effect, meaning a typical customer on a dual fuel tariff will pay 3.97 pounds more a week.

The latest price hikes are about double those EDF brought in January to reflect soaring wholesale costs in late 2007.

"Record world oil prices have continued to drive up wholesale gas prices. Alongside unprecedented rises in wholesale coal and electricity costs, this has impacted hugely on the cost of supplying energy to our customers," Eva Eisenschimmel, Chief Operating Officer of EDF Energy Customers Branch, said.

"We now have to pass on some of the resulting rise in wholesale costs to our customers."

The UK arm of state-run French power giant EDF pointed to a 70 percent increase in coal costs, a 63 percent rise in gas and 47 percent higher wholesale power prices since it last increased its retail prices.

MORE TO COME

Analysts and industry sources say a second round of big increases in household energy bills from all suppliers is likely over the next few months because the big utilities can only absorb the impact of soaring wholesale costs for so long.