EDF has recently unveiled a new energy tariff featuring three distinct pricing tiers. The company’s FreePhase tariff incorporates different rates that align with daily fluctuations in wholesale energy prices. These rates are categorized as red (peak), amber (off-peak), and green (night), aiming to enable customers to economize by shifting their energy consumption to more cost-effective periods within the day.
According to EDF, customers can potentially save up to £187 annually on their electricity bills compared to conventional variable rates. Peak red rates apply from 4 pm to 7 pm, while off-peak amber spans from 6 am to 4 pm and 7 pm to 11 pm, with green night rates applicable from 11 pm to 6 am.
The energy provider is rolling out two variations of the tariff. Firstly, the FreePhase Dynamic option adjusts unit rates in response to wholesale electricity price variations. This version offers off-peak rates up to 30% cheaper than the standard variable tariff, with night rates potentially 44% more cost-effective.
Under a maximum price cap of 75p/kWh, even if wholesale prices surge, the FreePhase Static option features fixed rates for a year. Off-peak amber rates are around 16% cheaper, while night green rates can be up to 35% more economical compared to the standard variable tariff.
Both FreePhase tariff options mandate a smart meter that transmits readings every 30 minutes, with payments required via Direct Debit. Notably, there are no early exit fees associated with these tariffs.
Customers can also benefit from complimentary electricity during periods of negative wholesale market prices, which typically occur when there is an excess of renewable energy and low electricity demand. With FreePhase Static, customers receive credited energy back into their account, while Dynamic customers do not incur charges for electricity usage during these free periods.
Over the past year, an estimated 192 hours of equivalent free electricity were available. Interested customers can sign up for these tariffs via the EDF website.
EDF’s Retail Director, Rich Hughes, expressed enthusiasm about the FreePhase launch, highlighting its simplicity in enabling customers to monitor daily energy price fluctuations and plan electricity usage without the need for complex analyses. Hughes emphasized the rewards of free electricity periods amid negative prices, underscoring the dual benefits of saving money and reducing carbon footprint.
This development coincides with the recent increase in energy bills, as the Ofgem price cap has escalated from £1,720 to £1,755 for a typical dual fuel household paying via direct debit.