EDF has unveiled a new energy tariff featuring three distinct pricing tiers to cater to varying energy consumption needs. The FreePhase tariff by the energy provider adjusts rates based on daily fluctuations in wholesale energy prices, offering customers the opportunity to save money by shifting their energy usage to more cost-effective time slots.
According to EDF, customers can potentially save up to £187 annually on their electricity bills compared to standard variable rates. The tariff includes three time-of-use rates: red for peak hours (4pm to 7pm), amber for off-peak hours (6am to 4pm and 7pm to 11pm), and green for night hours (11pm to 6am).
The FreePhase tariff is being launched in two versions. FreePhase Dynamic features variable unit rates that change based on wholesale electricity prices, providing off-peak rates up to 30% cheaper and night rates up to 44% cheaper than standard variable tariffs. On the other hand, FreePhase Static offers fixed rates for a 12-month period, with off-peak rates around 16% cheaper and night rates up to 35% cheaper compared to standard variable rates.
Both FreePhase tariff options require customers to have a smart meter that sends readings every 30 minutes and to make payments via Direct Debit. There are no exit fees for those choosing to switch from this tariff early.
Customers on the FreePhase tariff will receive free electricity during periods when wholesale market prices turn negative, indicating surplus renewable energy and low electricity demand. With FreePhase Static, customers will receive energy credits, while Dynamic customers will not be charged for electricity consumed during the free electricity periods.
EDF estimates that customers had access to approximately 192 hours of equivalent free electricity over the past year. Interested customers can sign up for the FreePhase tariff through the EDF website.
Rich Hughes, EDF’s Director of Retail, expressed enthusiasm about the launch of FreePhase, highlighting its user-friendly approach to tracking energy prices and promoting energy-saving practices. He emphasized the flexibility of the dynamic tariff for price-conscious customers and the static version for those seeking stability in rates.
The introduction of the FreePhase tariff comes at a time when energy bills have increased, with the Ofgem price cap rising from £1,720 to £1,755 for a typical dual fuel household paying by direct debit.