EDF Energy is to raise gas prices by 15.4 per cent and electricity prices by 4.5 per cent from 10 November.
The company made the move because, it said, after a rise in wholesale prices it could no longer shoulder the cost for the consumer.
EDF is the last of the 'big six' energy companies to announce increases in prices for domestic customers. However the company says that trust in the industry needs to be rebuilt, through a Competition Commission inquiry if necessary.
Vincent de Rivaz, chief executive of EDF Energy, said: 'We have absorbed rising wholesale energy, network and other costs as long as possible but must reluctantly now pass some of these through to consumers. However, unlike some other suppliers we have been able to give protection to our customers, particularly for their electricity consumption, because of our choice to invest in low carbon nuclear generation, which enjoys stable costs compared to gas and coal and has had a strong performance this year.'
EDF Energy claimed it would remain the cheapest major supplier of dual fuel, based on Ofgem's national average of regional prices, which assumes typical consumption of 3,300kWh electricity and 16,500kWh gas per annum and including discounts and VAT charged at 5 per cent.
The company says with average standard dual fuel bills up to £53 a year cheaper than some of its competitors. The company say they will be the cheapest dual fuel provider in all regions for credit and pre-payment and in 13 out of 14 regions for Direct Debit.
Mr de Rivaz, continued: 'As a responsible company, we are committed to competitive prices and fairness to our customers and at the same time meeting the huge requirements for investment in Britain's energy infrastructure.
'Our announcement shows how the integration of supply and generation businesses supported by investment in low carbon nuclear power can deliver benefits for customers. That being said, despite numerous regulatory enquiries, we recognise there remains a widespread lack of understanding and suspicion of the industry as a whole, among the public, customers in general, politicians, regulators and others.
'It is important this perception is addressed. The energy challenges Britain faces are far too important and can only be addressed in a world with trust, open dialogue and mutual understanding. If a Competition Commission inquiry is necessary to build this trust, then it is a step that should be taken. We would welcome the opportunity to explore all the issues fully and openly. As a fair company, we have nothing to hide.
