EDF launches new tariff £50 below the energy price capEDF launches new tariff £50 below the energy price cap

French energy company EDF has launched a new tracker tariff set £50 below Ofgem’s energy price cap.

The EDF Ensure tariff is a one-year, fixed-term tracker tariff with a £25 per fuel discount applied through standing charges, the fixed daily charges levied on customers’ bills. These charges cover the fixed cost of supplying electricity and gas to homes.

The tariff will launch at a discounted price against the 1 July cap level, offering customers a discounted energy cost of £1,518 per year. The price cap currently stands at £1,568, but this is set to change on 1 October 2024. Much of the industry expects bills to increase once again this coming winter.

Rich Hughes, director of retail at EDF, said: “While the price cap will come down from July, it is expected to increase again this Winter. Our new tariff will guarantee that customers who have already cut back or made changes to improve energy efficiency will pay proportionately less.

“Standing charges have increased significantly over the previous couple of years, and this new tariff is another way we are helping customers save cash and carbon.”

To sign up for the tariff, customers must have or agree to have a smart meter installed. EDF confirmed that the smart meters are free to install and provide various benefits, including EDF’s exclusive Energy Hub platform, where customers can access a personalised view of their energy use.

Energy prices a focus for the upcoming election

With the UK gearing up for a general election in the coming weeks, all parties have hotly debated energy prices.

Support for families struggling to pay energy bills will likely be critical to voters. Ofgem recently revealed that 2.3 million households are in energy debt or arrears, an increase of 20% from the previous year, while total household energy arrears rose to £3 billion in 2023.

Many are concerned about the UK’s ageing housing stock and its impact on household energy bills. While the government recently awarded almost half a billion pounds for decarbonising public buildings, many, including Mike Thornton of the Energy Saving Trust, want more support for homes.

Thornton said: “After the election, the incoming UK government must prioritise policies that support people's use of less energy and install cost-effective energy efficiency improvements in their homes. This will be fundamental to bringing down energy bills, reducing carbon emissions, and guaranteeing our energy security in the long term.

“A coordinated, long-term retrofit plan for England that incentivises measures from improved insulation to electrified heat must be central to any incoming UK government’s ambition. Now is the time to commit to making our homes ready for a net zero future and ending our dependence on volatile international fossil fuel markets for good.”