EDF has launched a new energy tariff called FreePhase, which offers customers three different pricing rates based on daily wholesale energy fluctuations. The tariff includes red (peak), amber (off-peak), and green (night) rates, aiming to help customers save money by adjusting their energy usage to cheaper times of the day.
According to EDF, customers can potentially save up to £187 annually on electricity bills compared to standard variable rates. The red peak rates apply from 4 pm to 7 pm, amber off-peak rates are effective from 6 am to 4 pm and 7 pm to 11 pm, while green rates are applicable from 11 pm to 6 am.
The FreePhase tariff is available in two versions. FreePhase Dynamic offers variable unit rates that adjust based on wholesale electricity prices, providing off-peak rates up to 30% cheaper and night rates up to 44% cheaper than the standard variable tariff. On the other hand, FreePhase Static features fixed rates for 12 months, offering amber rates around 16% cheaper and green rates up to 35% cheaper compared to the standard variable tariff.
Both FreePhase tariffs require a smart meter for 30-minute interval readings and payment by Direct Debit, with no exit fees for early termination. Customers are also eligible for free electricity during periods of negative wholesale market prices, which occur when there is excess renewable energy and low electricity demand.
EDF estimates that customers could have received approximately 192 hours of equivalent free electricity in the past year. Interested customers can sign up for the FreePhase tariff on the EDF website.
Rich Hughes, Director of Retail at EDF, expressed enthusiasm about the new tariff, stating that it simplifies tracking energy prices and planning electricity usage, offering both dynamic and static options to cater to different preferences. The tariff also rewards customers with free electricity during negative price periods, providing savings in both cost and carbon emissions.
This initiative comes as energy bills have recently increased, with the Ofgem price cap rising from £1,720 to £1,755 for a typical dual fuel household paying by direct debit.