EDF handing energy customers free £234 after making rule change

The deal is £130 lower than Ofgem’s price cap for January 2025 - and could be £234 under the April price cap if EON's prediction of 5.7 per cent hikes comes to fruition.
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EDF Energy is offering customers the chance to save £130 on their energy bills as it is offering a new tariff which promises to be £130 cheaper on average than the current Ofgem price cap. The deal is £130 lower than Ofgem’s price cap for January 2025 - and could be £234 under the April price cap if EON's prediction of 5.7 per cent hikes comes to fruition.

Energy prices have climbed since October due to seasonal demand, recent cold weather, and geopolitical instability, including conflicts in Ukraine and the Middle East. EDF’s forecasting suggests further price cap increases in April, although wholesale price fluctuations could alter projections.

The tariff requires no smart meter, carries no exit fees, and is available directly through EDF. EDF said: “From 1 October to 31 December 2024 the energy price cap is £1,717 a year. The energy price cap is increasing to £1,738 a year for the period between 1 January and 31 March 2025. Our Simply Fixed Direct 1Yr Jan26 fixed tariff has a typical bill price of £1,608 a year – £130 cheaper than the Ofgem cap between 1 January to 31 March 2025.

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“The 'typical' bill price of the Ofgem price cap assumes no changes in price over a full year. In reality, the price cap changes every three months. Fixed tariff rates remain the same for the duration of the tariff and are not covered by the energy price cap.”

Uswitch energy spokeswoman Elise Melville advises: “Now is also an ideal time to look at switching to a new energy tariff, as there are a range of fixed deals currently available that are cheaper than the January price cap.

“By opting for a fixed deal, you’re locking in those rates for the duration – which means households could have price certainty and avoid the ups and downs of the price cap. Make sure you are happy with how long the contract lasts and any exit fees for leaving early.”

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It comes weeks after EDF made a standing charge pledge to reduce the "moral hazard" fee. Discounting standing charges instead of unit rates ensures all customers see the same financial benefit, regardless of how much energy they use.

When discounts are applied to unit rates instead, the amount a customer saves will fluctuate based on their consumption. Through discounting standing charges, EDF guarantees the same discount for all customers signed up to its Simply Tracker Extra tariff.