EDF is handing energy customers free £129 ahead of Christmas

EDF has launched its 'cheapest energy tariff' as the Ofgem cap looks forecast to rise after Christmas in January. EDF’s price cap forecasting service predicts that the upcoming cap will go up again from 1 January 2025 and be £19 more than the October price cap level.

EDF is also offering a 12-month tracker tariff, which tracks at £50 below the price cap, with that £25 per fuel saving coming from standing charges rather than unit prices, ensuring that those who sign-up will see the same financial benefit even if they are low energy consumers or on a Pay As You Go meter.

There are no exit fees for Simply Fixed Direct 1y Nov25 if customers sign up directly through EDF, which costs £1,588 for a typical energy user paying by direct debit and a smart meter is not required to sign up - a £129 decrease on the current cap. The deal could be removed at any time due to volatility in global wholesale prices.

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Rich Hughes, Director of Retail at EDF, said: “At this time of year people are using more energy and are more concerned about the cost of their energy bill. We want to help in any way we can and have taken advantage of wholesale prices dropping to offer another market-leading deal.

“The market does remain unstable and with the majority of customers on standard variable tariff likely to face another increase come January, customers still on that tariff could benefit from signing up to this tariff.” Typically the price cap does increase during the winter months, but there are other factors behind January’s predicted rise.

“The American election and the uncertainty it brings for global gas prices as well as conflicts in the Middle East, and between Russia and Ukraine, continue to cause volatility in global wholesale energy markets. This will lead to what is likely a higher upcoming energy price cap with our forecast predicting a rise to £1,736”, said David Edmonds, the Head of Pricing and Valuations in Wholesale Market Services at EDF.