The French-owned utility firm, EDF energy has revealed its plan of increasing the price of its electricity by 2.6 percent from October 1.

There will be increase of £10 a year, from an average of £399 to £409.

The increased electricity prices are going to effect more than one million families with increased power bills.

It will be applicable to customers on a standard tariff in 11 regions out of 14 regions of EDF and those covered under its 'Economy 7' tariffs in three areas.

According to EDF, the increase in the regional electricity prices is due to recent 16 percent increase in the cost of distribution and transmission all over the UK.

But the customers can avail 2.5 percent discount on gas and electricity through EDF's energy discount plan which is applicable till the customers stay on the plan by the end of September 2011.

A credit of £12 has also been allotted to families with low-income.

Increased price will not affect fixed-price customers and gas users.

EDF, with 3.42 million electricity customers, posted first half profit of £2.5billion for 2010.