EDF has launched a new energy tariff with three pricing rates to encourage customers to shift energy use away from peak times.
The FreePhase tariff will reflect daily wholesale energy changes, with three time-of-use rates.
If households can shift their energy usage away from the ‘red’ peak period of between 4pm and 7pm, they’ll save money on amber (off-peak) and green (night) rates.
EDF claims it will offer customers savings of up to £187 compared to standard variable tariffs (SVT) governed by the price cap.
Customers can choose between FreePhase Dynamic, with unit rates in line with wholesale prices every day, or FreePhase Static, which has unit rates fixed for 12 months.
Households that shift high-energy tasks, like laundry, to off-peak times can save money on their bills
The Dynamic tariff will offer off-peak rates up to 30 per cent cheaper than the standard variable tariff, and night rates up to 44 per cent cheaper, says EDF.
It also comes with a maximum price cap of 75p/kWH even if wholesale prices go higher.
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FreePhase Static offers fixed unit rates for the three tiers, with off-peak rates around 16 per cent cheaper and night rates up to 35 per cent less than an SVT.
Customers will need to have a smart meter and pay by direct debit, but there are no exit fees for leaving the tariff early.
‘We’re excited to launch FreePhase, a dynamic tariff which makes it simple for customers to track the best and worst energy prices each day and plan their electricity usage, without having to analyse complex energy prices,’ said Rich Hughes, Director of Retail at EDF.
Customers who move to FreePhase tariffs will be rewarded with periods of free electricity when prices on the wholesale market go negative.
FreePhase Static customers will be credited for any electricity they’ve used during the free periods, while Dynamic customers won’t be charged for any electricity used.
Energy suppliers are encouraging households to shift their usage away from peak periods, in a bid to balance the National Grid to help prevent blackouts when demand exceeds supply.
Some suppliers already offer customers cheaper energy if they change their consumption habits, while others allow customers to track the wholesale energy market.
So Energy recently launched a tariff that tracks smart meter data to create individual pricing pricing rates.
The So Unique tariff has peak, off-peak and super off-peak periods, based on customers’ own energy habits.
The time bands and rates will vary from customer to customer. The company says it wants to move away from a ‘one-size-fits-all approach to energy pricing’.
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