EDF Energy is offering customers the chance to save £130 on their energy bills (Image: Getty)
EDF Energy is offering customers the chance to save £130 on their energy bills – and it’s scrapped a hidden charge too.
is offering a new tariff which promises to be £130 cheaper on average than the current .
The regulator has raised prices twice in a row, in October and January, by a total of 11.2% and is forecast to increase prices again in April.
Now, EDF is urging customers to switch and by moving to its Simply Fixed Direct 1Yr tariff, which has a typical bill price of £1,608 per year. EDF says the tariff is its cheapest fix and as an added bonus, it has no hidden exit fees.
By comparison, Ofgem’s price cap rate is £130 more expensive at an average of £1,738 per year, until March 31, 2025.
Ofgem reviews its price cap every three months and forecasts suggest it will rise again in April, meaning those who switch to EDF’s tariff could potentially make an even bigger saving.
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.
“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.”
Analysts Cornwall Insight forecast a 3% hike to the price cap in April due to turbulent wholesale markets, taking annual bills above the current rate of £1,738.
Ofgem has already urged customers to take advantage of increasing choice among suppliers and look for the best deal to help keep their bills down.
Households should be aware that the price cap doesn’t limit total bills as you must pay for the amount of energy you use – so those who use more, pay more.
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The price cap increase also comes as millions of pensioners are facing a winter with less government support, after a Labour rule change scrapped the – which is worth up to £300 – from those who don’t receive Pension Credit or other means-tested benefits. The change has seen around 10 million pensioners miss out on the vital support this winter.
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.”