By Nora Buli

(Reuters) – UK energy supplier EDF Energy, a subsidiary of France’s EDF, on Tuesday said it will raise its standard variable tariffs by 12% from Oct. 1 to account for rising wholesale energy costs.

The increase comes close on the heels of British energy regulator Ofgem’s decision to increase its cap on the most widely used tariffs by about 12-13% because of soaring global gas prices.

Standard variable tariff are regulated by Ofgem with a cap on electricity and gas bills that came into effect in January 2019 in an effort to end what former British Prime Minister Theresa May called “rip-off” prices charged by energy companies.

“As Ofgem has explained, it is global gas prices that have caused the unprecedented increase in wholesale energy costs and, as a sustainable, long-term business, we must reflect the costs we face,” said Philippe Commaret, head of EDF’s UK retail business.

“We know a price rise is never welcome, especially in tough times,” he said, adding that the company will cut prices again as soon as it is able to do so.

Gas prices have soared globally this year owing to factors including low stock levels, outages at gas plants and gas fields, which have curbed domestic, Norwegian and Russian supply while a buying spree in Asia has led to fewer international deliveries of liquefied natural gas (LNG).

(Reporting by Nora Buli in Oslo; Editing by Nina Chestney and David Goodman)

By Nora Buli

(Reuters) – UK energy supplier EDF Energy, a subsidiary of France’s EDF, on Tuesday said it will raise its standard variable tariffs by 12% from Oct. 1 to account for rising wholesale energy costs.

The increase comes close on the heels of British energy regulator Ofgem’s decision to increase its cap on the most widely used tariffs by about 12-13% because of soaring global gas prices.

Standard variable tariff are regulated by Ofgem with a cap on electricity and gas bills that came into effect in January 2019 in an effort to end what former British Prime Minister Theresa May called “rip-off” prices charged by energy companies.

“As Ofgem has explained, it is global gas prices that have caused the unprecedented increase in wholesale energy costs and, as a sustainable, long-term business, we must reflect the costs we face,” said Philippe Commaret, head of EDF’s UK retail business.

“We know a price rise is never welcome, especially in tough times,” he said, adding that the company will cut prices again as soon as it is able to do so.

Gas prices have soared globally this year owing to factors including low stock levels, outages at gas plants and gas fields, which have curbed domestic, Norwegian and Russian supply while a buying spree in Asia has led to fewer international deliveries of liquefied natural gas (LNG).

(Reporting by Nora Buli in Oslo; Editing by Nina Chestney and David Goodman)