EDF has launched a new service which it claims will help consumers “unlock potential savings” when switching energy tariffs.
As of today, the energy supplier will update its website on a weekly basis with their latest projections and the expectations for what Ofgem’s price cap is expected to cost the average household.
According to EDF, this will allow consumers to compare up-to-date costs against fixed deals in the market and secure lower energy bills.
Under the firm’s current projections, the UK’s energy price will drop for the upcoming Q3 2024 to £1,568, from the current threshold of £1,690 a year, although there’s no guarantee this will happen.
Increases throughout Q4 2024 and Q1 2025 are expected to hit £1,684 and £1,707, respectively.
Ofgem’s energy price cap is then expected to fall once again by £2 per year in Q2 2025 to £1,705 annually.
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The EDF has launched a new price cap projection service
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Price cap projections are usually shared around the time the regulator publishes the new price cap level, however, this means customers continue to compare fixed rate energy tariff with out-of-date figures.
It should be not that energy price cap projections are not a guarantee Ofgem will set the cap at the forecasted level.
Due to recent disruptions in Norwegian gas suppliers and the geopolitical crisis in the Middle East, price cap projections for the winter have risen by around 10 per cent.
External pressures on the wholesale gas and electricity market have contributed to recent hikes in household energy bills.
Experts from EDF’s Wholesale Market Services team will closely monitor any changes in the energy market.
These experts will then build and maintain models to better understand customer demand and provide services to the National Grid.
In order to provide weekly forecasts, EDF’s team will combine market prices and their projection of other costs using Ofgem’s specified formula.
Amid the cost of living crisis, households are still struggling to bring their energy bills down and secure a cheaper tariff.
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Energy bills have been on the rise in recent years PAChristopher Dalley, Wholesale Market Services Director at EDF, said: “The uncertainty of energy prices has highlighted the need for tools that offer consumers clear, regular clarity and guidance.
“Energy prices change day by day, not once a quarter, so we are proud to launch this new service which gives customers up-to-date information to help them understand whether a deal is a good or bad one, and see the potential savings they could make by switching tariffs.
“We want to make energy simpler, cheaper and cleaner so by combining our energy market and forecasting expertise, this service will support customers in making the best decisions for their household.”
