EDF Energy issues £50 message to millions of customers before big savings change

Millions of households could see savings on their gas and electricity bills with a new offer from EDF Energy, which reduces the amount customers pay in standing charges.

Money experts are now spotlighting the tariff from the energy behemoth, suggesting it could shave £50 off annual energy bills and provide even more savings with the Price Cap set to decrease on July 1. Martin Lewis' Money Saving Expert (MSE) provided further details in an update to its readers, stating: "EDF Energy has launched a new tariff tapping into the anger about the high level of standing charges set by regulator Ofgem under its Price Cap.

"The new EDF Ensure tracker tariff is effectively a discounted version of the Price Cap that will be £50 cheaper over the year and it does this by lowering standing charges, not unit rates. EDF's new tariff is a decent deal for lower energy users say, those currently paying up to £100 a month above that there are other options that could work out cheaper.

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As reported by BirminghamLive, they went on to explain: "Regulator Ofgem's Energy Price Cap dictates the maximum rate that firms can charge on their standard tariffs. Over 80% of homes in England, Scotland and Wales are on price-capped tariffs, and most firms set their rates at the maximum so in effect the Price Cap dictates what most people pay.

"The Price Cap changes every three months on 1 January, April, July and October so on Monday we'll move to the July rates. As EDF Ensure is a tracker tariff, it will also change every three months in line with the cap though it's being launched at the cheaper July rate already,

"So switch now and you get a week of extra savings, before the Price Cap catches up. EDF told us it will apply the same fixed discount on the Price Cap standing charges to all payment methods across all regions (and standing charges vary widely by region), so you get a flat £25 discount on electricity and/or a flat £25 on gas over 12 months."