EDF Energy becomes second UK firm to raise energy prices

By Susanna Twidale

LONDON (Reuters) - EDF Energy said on Thursday it would raise its energy prices in Britain, the second firm this week to announce an increase, despite pressure from the government to keep bills down.

The British arm of French utility EDF (EDF.PA) said the rise was due to higher costs associated with supplying electricity, echoing comments made by rival Centrica (CNA.L), which announced its rise on Tuesday.

"EDF Energy continues to face pressures with energy, policy and the costs of installing smart meters all increasing significantly since last summer," it said in a statement.

EDF said its average electricity standard electricity price would rise by 2.7 percent equating to a 1.4 percent rise for "dual fuel" customers taking both gas and electricity from the company on its standard variable tariff.

The rise will add 16 pounds ($22.65) taking its average standard dual fuel bill to 1,158 pounds a year, EDF said.

Britain's government has asked industry regulator Ofgem to put a price cap on the most widely used standard tariffs to combat what it has called "rip off" energy prices.

However the cap will not come into effect until the end of the year at the earliest, Ofgem said.

($1 = 0.7064 pounds)

(Reporting by Susanna Twidale; editing by Jason Neely and David Evans)