EDF to raise prices by 10.8%

EDF Energy is to increase gas and electricity prices for households by 10.8% from December 7. It follows British Gas, Scottish Power and npower

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Fuel price rises could hurt economic recovery

The size of today's increases are rather startling - 11 percent.

Rivals, on average, are 7 percent. It means that the typical EDF customer is going to be paying £122 more this year.

The company says that its charges are the lowest amongst its peers, and it's keen to explain that it's own costs have been rising.

It's having to make investments, the wholesale price of gas is increasing - we may hear more about that sort of thing next week.

Fuel price moves are a very important factor in inflation. The economy has had a boost as we heard yesterday with the GDP figures. In part, inflation has fallen from a peak last year at 5.2% down to 2.2% in september.

A large chunk of that fall was because of cheaper fuel bills, and as those fuel bills get more expensive again we could see inflation rise to 2.5% or more and that could hurt the recovery.

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