EDF has rolled out a fresh energy tariff featuring three distinct pricing tiers. The energy provider has unveiled the FreePhase tariff, which includes varying rates aligned with daily shifts in wholesale energy prices. This tariff comprises three time-of-use rates – red (peak), amber (off-peak), and green (night) – aiming to enable customers to cut costs by adjusting their energy consumption to cheaper periods throughout the day.
According to EDF, customers could potentially save up to £187 annually on their electricity bills compared to standard variable rates. The red peak rates are applicable from 4 pm to 7 pm, the amber off-peak period spans from 6 am to 4 pm and 7 pm to 11 pm, and the green period extends from 11 pm to 6 am.
EDF is launching two variations of the tariff. The FreePhase Dynamic option entails unit rate adjustments based on wholesale electricity prices. It offers off-peak rates up to 30% cheaper than the standard variable tariff and night rates up to 44% lower. This tariff carries a maximum price cap of 75p/kWh even if wholesale prices surge. Additionally, there is the FreePhase Static version with fixed rates for a 12-month period.
Under the FreePhase Static tariff, off-peak (amber) rates are roughly 16% more economical, while night rates (green) can be up to 35% cheaper compared to the standard variable tariff.
Both FreePhase tariffs necessitate a smart meter for readings every 30 minutes, and customers are required to make payments via Direct Debit. There are no penalties for early exits from the tariff. Customers will also receive free electricity during periods when wholesale market prices turn negative, typically during surplus renewable energy and low electricity demand situations.
With FreePhase Static, customers will receive energy credits, whereas Dynamic customers won’t incur charges for electricity usage during the free electricity periods. Over the past year, it is estimated that customers had access to 192 hours of equivalent free electricity. Interested customers can sign up for the tariff through the EDF website.
Rich Hughes, Director of Retail at EDF, expressed enthusiasm about the FreePhase launch, highlighting the simplicity it offers in tracking daily energy price fluctuations. He emphasized the potential savings and environmental benefits for customers opting for these tariffs.
This development comes at a time when energy bills have recently increased, with the Ofgem price cap rising from £1,720 to £1,755 for a standard dual fuel household paying via direct debit.