EDF has unveiled a fresh energy tariff featuring three distinct pricing tiers. The company’s new FreePhase tariff is structured to align with daily fluctuations in wholesale energy costs, offering red (peak), amber (off-peak), and green (night) time-of-use rates. The aim is to empower customers to optimize their energy consumption by shifting usage to more cost-effective periods throughout the day.
According to EDF, participants can potentially 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) span from 6 am to 4 pm and 7 pm to 11 pm, while night rates (green) are applicable from 11 pm to 6 am.
The energy provider is rolling out two iterations of the tariff. The FreePhase Dynamic variant adjusts unit rates based on wholesale electricity pricing, offering off-peak rates up to 30% cheaper and night rates up to 44% cheaper than standard variable tariffs. This plan includes a maximum price cap of 75p/kWh to safeguard customers in case wholesale prices surge. The FreePhase Static option features fixed rates for a year, offering around 16% cheaper off-peak rates and up to 35% cheaper night rates compared to standard variable tariffs.
Both FreePhase tariffs necessitate a smart meter for half-hourly readings and mandate payment via Direct Debit. Exiting the tariff prematurely incurs no penalties. Additionally, customers stand to benefit from free electricity during periods of negative wholesale market prices, typically occurring when renewable energy surpluses coincide with low electricity demand.
Under the FreePhase Static plan, customers receive energy credits, while Dynamic plan users are exempt from charges during free electricity periods. Approximately 192 hours of equivalent free electricity were available over the past year. Interested individuals can sign up for the tariff via the EDF website.
Rich Hughes, EDF’s Retail Director, expressed enthusiasm for the FreePhase launch, emphasizing the simplicity it offers in tracking daily energy price fluctuations and planning electricity usage. He highlighted the rewards customers receive during free electricity periods, emphasizing the dual benefits of cost savings and reduced carbon footprint.
This development comes as energy costs have risen, with the Ofgem price cap recently increasing from £1,720 to £1,755 for a typical dual fuel household paying by direct debit.
