EDF has unveiled a new energy tariff featuring three distinct pricing tiers.
The energy company’s FreePhase tariff offers varied rates corresponding to daily shifts in wholesale energy prices. These rates are categorized as red (peak), amber (off-peak), and green (night), aiming to enable customers to save money by adjusting their energy consumption to more cost-effective periods of the day.
According to EDF, customers could save up to £187 annually on their electricity bills compared to standard variable rates. Peak rates (red) are effective from 4 pm to 7 pm, off-peak rates (amber) from 6 am to 4 pm and 7 pm to 11 pm, while night rates (green) apply from 11 pm to 6 am.
The energy provider is launching two versions of the tariff. FreePhase Dynamic adjusts unit rates based on wholesale electricity prices, offering off-peak rates up to 30% cheaper and night rates up to 44% cheaper than the standard variable tariff. It includes a maximum price cap of 75p/kWh to protect customers from rising wholesale prices. In contrast, FreePhase Static offers fixed rates for a year, with off-peak (amber) rates around 16% cheaper and night (green) rates up to 35% cheaper than the standard variable tariff.
Both FreePhase tariffs necessitate a smart meter for half-hourly readings and require payment via Direct Debit, with no early exit fees. Customers may receive free electricity during periods of negative wholesale market prices, typically occurring when renewable energy is abundant and electricity demand is low.
Under FreePhase Static, customers receive credited energy back into their account, while Dynamic customers don’t incur charges for electricity usage during free electricity periods. Approximately 192 hours of equivalent free electricity were available over the past year. Customers can sign up for the tariff on the EDF website.
Rich Hughes, EDF’s Director of Retail, expressed enthusiasm for the new tariff, highlighting its simplicity in tracking daily energy price fluctuations and enabling efficient electricity usage without the need for complex analysis. He emphasized the benefits of free electricity periods when prices go negative, offering savings in both cost and carbon emissions.
This announcement coincides with a recent increase in energy bills, with the Ofgem price cap rising from £1,720 to £1,755 for a typical dual fuel household paying by direct debit.
