EDF has launched a new tariff which is considered the “cheapest of the largest” energy suppliers in the UK.
The energy firm’s Essentials 1Yr May25 tariff is priced at £1,580 for a one-year fix for both new and existing customers.
This is £110 under the current Ofgem energy price cap, which controls how much a household with average usage pays in energy bills, £1,690. However, the energy price cap is a limit on unit rates, so people who use more will pay more.
It is forecast to remain competitive against the regulator’s cap until April 2025, based on projections from Cornwall Insights.
As such, customers are expected to save an average of £50 on their energy bills annually with EDF’s latest offering.
This is based on Cornwall Insight’s estimates for the last two quarters for this year and Q1 in 2025.
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EDF has launched one of the "cheapest" energy tariffs on the market
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Rich Hughes, the director of retail at EDF, outlined why Britons “can likely beat” the pending hikes to energy bills towards the end of the year.
He explained: “At EDF, we’re passionate about all our customers saving cash on their energy bills.
“That's why we're pleased to introduce our best fixed-price tariff since 2021, now £110 lower than the current industry cap.
“By signing up for this tariff, customers can beat the likely price cap rises this winter and enjoy savings on their energy bills, but they should act now before it’s too late as the deal ends on May 9.”
Any customers who sign up to the EDF tariff are required to have a smart meter or agree to one being installed.
According to the supplier, those who install this device will have access to a wide range of benefits.
These include EDF’s exclusive Energy Hub platform which can be accessed through someone’s MyAccount or through the supplier’s app.
Thanks to this platform, customers are able to have a personalised view of their energy usage.
Based on EDF’s research, customers who use the Energy Hub to monitor their usage are able to slash their energy bills by up to £31 annually.
Furthermore, a smart meter installation and the in-home display it comes with has no extra upfront cost.
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PACustomers interested in the EDF Essentials 1Yr May 25 tariff can apply through their MyAccount online or on the supplier’s app. New customers can sign up via EDF’s website.
Emily Seymour, an energy editor at consumer association Which?, outlined what people should consider when agreeing to a new energy tariff.
She explained: “With the price cap predicted to remain fairly stable for the rest of 2024, more competitive deals may become available in the coming months.
“As a rule of thumb, we wouldn’t recommend fixing a contract longer than 12 months, higher than the April price cap or with significant exit fees – in case circumstances change and you want to switch to a better deal.”