EDF has announced the launch of a new energy tariff which guarantees customers pay £50 less than Ofgem's price cap in a move that will see "customers save cash".
Recently, the supplier has launched new deals to entice new customers and offer households big savings on their energy bills during the cost of living crisis.
The latest product from the energy supplier is EDF Ensure which is a one-year, fixed-term tracker tariff with a £25 per fuel discount applied through standing charges.
Notably, all EDF customers will make the same savings due standing charges being discounted instead of unit rates, including low energy customers or those on a Pay As You Go Meter.
This latest product will launch discounted against the price cap for July 1 to September 31, providing an average annual cost of £1,518 until the next Ofgem cap change on October 1.
Prices are based on the regulator's Typical Domestic Consumption Values (TDCVs) which are currently set at 2,700 kWh per annum for electricity, and 11,500 kWh per annum for gas.
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The cost of living crisis has pushed energy bills to new heights in recent years GETTY Rich Hughes, the director of Retail at EDF, broke down how customers will benefit from this latest offering.
He explained: “While the price cap will come down from July, it is expected to increase once again this Winter.
"Our new tariff will guarantee that customers who have already cut back or made changes to improve energy efficiency will pay proportionately less.
“Standing charges have increased significantly over the previous couple of years and this new tariff is another way we are helping customers save cash and carbon.”
What is the Ofgem energy price cap?
Ofgem's energy price cap is the maximum amount energy firms can charge Britons for each unit of energy and standing charge if they are on a standard variable tariff.
This cap is primarily based on wholesale energy prices and is only applicable to suppliers' standard and default tariffs, which the vast majority of families are currently on.
It should be noted that it is the rates that are capped which means if households use more energy than the average household, they will likely pay more in gas and electricity bills.
On 1 July, Ofgem's energy price cap will drop by seven per cent to £1,568 annually for a typical use household paying by Direct Debit but is expected to jump £1,762 a year from October 1.
Last year, the EDF invested £7.5million by rolling back standing charges for a quarter of a million of its most vulnerable customers after charges had gone up by 55 per cent since April, 2021.
In order to help consumers keep track of the quarterly price cap changes, the firm has created a tracker webpage which is updated every Tuesday.
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The new tariff from EDF will guarantee consumers pay less than Ofgem's price cap
GETTYTo get this tariff, EDF customers will need to have or agree for a smart meter to be installed.
These devices are free to be installed and provide a range of benefits including EDF’s exclusive Energy Hub platform where customers can access a personalised view of their energy use.
Furthermore, EDF Ensure is available to new and existing customers on Direct Debit, Cash Cheque and Pay As you Go and backed by zero carbon electricity.
The firm's research discovered consumers that use Energy Hub to understand their usage are able to actively reduce their bills by up to £41 a year whilst also reducing their carbon footprint.