EDF Energy has launched a new fixed rate tariff priced £149 lower than Ofgem’s upcoming price cap.
After falling every quarter this year, the standard variable energy bill is set to rise by 10 percent from October 1, bringing average annual costs for a typical duel-fuel household up to £1,717.
The price cap is then forecast to rise again by a further three percent in January until March to an estimated £1,762 a year for a typical household.
However, EDF’s Essentials Fixed 1y Oct25 is priced at £1,568 for a typical average energy user paying by direct debit, allowing customers to fix for a year at the current Ofgem price cap level.
The tariff is available to new and existing EDF customers and requires a smart meter, or the agreement to have one installed.
Rich Hughes director of retail at EDF, commented: “With the price cap jumping up by 10 percent in October we know customers will be concerned.
“We want to do as much as we can to help and with wholesale prices currently lower, we are pleased to offer a deal which is almost £150 below the October price cap.”
Due to the ongoing volatility in global wholesale energy prices, EDF says the current deal could be removed at any time.
To help low-energy consumers or those on a Pay As You Go meter, the provider is also offering a one-year fixed tariff tracking at £50 below the price cap, with that £25 per fuel saving coming from standing charges rather than unit rates.
However, it should be noted that wholesale energy prices could drop again next summer, potentially leading those locked into a fixed deal to pay more, which is an important consideration before committing to a fixed rate.
EDF will be allowing smart meter customers to participate in ‘Sunday Saver’ challenges this winter, which reward customers with free electricity for using less during the peak times or 4pm to 7pm.
According to the energy provider, a 10 percent reduction in peak consumption would earn four hours of free electricity, a 20 percent reduction earns eight hours, and 30 percent earns twelve hours.
Meanwhile, “super savers” using 40 percent less could earn an impressive 16 hours of free electricity on a Sunday.
After installing a smart meter, customers can access EDF’s Energy Hub platform where they can see a personalised view of their energy usage.
Customers who use the energy hub to look at their bills are estimated to reduce their bills by up to £41 a year, as well as their carbon footprint.