EDF has unveiled a new energy tariff featuring three distinct pricing tiers. The energy company has launched the FreePhase tariff, which offers consumers varying rates aligned with daily changes in wholesale energy prices. The tariff includes three time-of-use rates: peak (red), off-peak (amber), and night (green), with the aim of enabling customers to save money by shifting their energy consumption to less expensive times of the day.
According to EDF, customers can potentially save up to £187 annually on their electricity bills compared to standard variable rates. Peak rates apply from 4 pm to 7 pm, while off-peak spans from 6 am to 4 pm and 7 pm to 11 pm, and night rates are effective from 11 pm to 6 am.
The energy provider is rolling out two versions of the tariff. The FreePhase Dynamic option adjusts unit rates based on wholesale electricity pricing fluctuations, offering off-peak rates up to 30% cheaper and night rates up to 44% cheaper than the standard variable tariff. This version includes a maximum price cap of 75p/kWh, even if wholesale prices surge. On the other hand, the FreePhase Static variant features fixed rates for a 12-month period.
With the FreePhase Static tariff, the off-peak (amber) rates are approximately 16% lower, and the night rates (green) are up to 35% cheaper compared to the standard variable tariff.
Both FreePhase tariffs necessitate a smart meter for readings every half-hour, and payment via Direct Debit is mandatory, with no early exit fees. Customers may receive complimentary electricity during periods of negative wholesale market prices, indicating surplus renewable energy and low electricity demand.
Under the FreePhase Static plan, customers receive energy credits, while Dynamic customers incur no charges for electricity used during free electricity periods. Approximately 192 hours of equivalent free electricity were reportedly available in the past year. Interested individuals can sign up for these tariffs on the EDF website.
Rich Hughes, EDF’s Director of Retail, expressed enthusiasm for the FreePhase launch, highlighting the simplicity it offers in tracking daily energy prices and planning electricity usage effectively. He emphasized the option for customers seeking more certainty with the static version, featuring fixed rates throughout the year.
As energy bills continue to rise, with Ofgem’s price cap increasing to £1,755 for a typical dual fuel household paying by direct debit, the introduction of the FreePhase tariff provides consumers with a potentially cost-saving alternative amidst the escalating energy costs.