EDF Energy has announced that it is planning to increase energy prices in the UK as energy firms record higher costs.

EDF is increasing its prices by much lower than 9 per cent average recorded in gas and electricity prices by energy firms in the country. SSE, British Gas, npower and Scottish Power have all increase prices in the UK. EDF will raise gas and electricity bills by 3.9 per cent from 3 January, 2014, which is less than half of the average price rise by the power firms. The move will convince customers to stay with the supplier.

Energy Secretary Ed Davey is set to announce details relating to the annual review in the House of Commons. He is expected to say that the companies will be subjected to rigorous checks in three key areas - competition, profit and customer engagement. The move comes after the four leading firms increased their price by an average of 9.1 per cent causing customer bills to exceed £1,400 a year, raising doubts that the companies are displaying cartel behaviour.

Following a series of tariff rises by power companies, MPs in the UK have summoned the big six power firms to the Parliament on the matter. Energy prices have become a crucial political agenda since opposition Labour leader Ed Miliband said that he would freeze prices if his party wins the general election in 2015.