EDF has launched a new energy tariff featuring three distinct pricing tiers. The FreePhase tariff, designed to align with daily fluctuations in wholesale energy costs, offers customers the opportunity to save money by adjusting their energy consumption to take advantage of cheaper rates during specific times of the day.
Under this tariff, customers can potentially save up to £187 annually compared to standard variable rates. The pricing structure includes red peak rates from 4pm to 7pm, amber off-peak rates spanning from 6am to 4pm and 7pm to 11pm, and green night rates from 11pm to 6am.
EDF is releasing two variations of the tariff. FreePhase Dynamic adjusts unit rates based on wholesale electricity prices, offering off-peak rates up to 30% lower and night rates up to 44% lower than standard variable tariffs. Additionally, a price cap of 75p/kWH is in place to protect customers from excessive wholesale price increases. On the other hand, FreePhase Static provides fixed rates for a 12-month period, with off-peak rates approximately 16% cheaper and night rates up to 35% cheaper than standard variable tariffs.
To enroll in either FreePhase tariff, customers must have a smart meter that transmits readings every 30 minutes and pay through Direct Debit. There are no penalties for exiting the tariff prematurely. Moreover, customers stand to benefit from free electricity during periods of negative wholesale market prices, which occur when there is surplus renewable energy and low electricity demand.
FreePhase Static customers receive credited energy back into their account, while Dynamic customers do not incur charges during the free electricity periods. Over the past year, it is estimated that customers had access to approximately 192 hours of equivalent free electricity. Interested individuals can sign up for the tariff through the EDF website.
Rich Hughes, EDF’s Director of Retail, expressed enthusiasm about the FreePhase launch, highlighting the simplicity of tracking energy pricing variations and the potential savings for customers. The introduction of this innovative tariff comes as energy bills have recently increased, with the Ofgem price cap rising to £1,755 for a typical dual fuel household paying via direct debit.
