EDF has unveiled a new energy tariff designed to undercut Ofgem’s price cap by £100 annually. The initiative provides a consistent discount applied through standing charges, offering all customers predictable savings regardless of energy usage.
With millions of UK households struggling under the weight of rising energy costs, EDF’s new tariff is a timely measure aimed at reducing financial pressure. By targeting the standing charges component of bills, the plan offers savings that are both accessible and equitable, setting a new precedent in how energy pricing can deliver value to diverse customers.
EDF: New Approach to Energy Savings
EDF’s Simply Tracker Extra tariff is a one-year, fixed-term option that guarantees customers will pay £100 less than the Ofgem price cap. Unlike traditional discounts, which are often applied to unit rates, this tariff reduces the standing charges—fixed daily fees incurred regardless of energy consumption. As a result, both low and high-energy users can benefit equally, an advantage especially significant for households with smaller energy footprints.
The average annual bill under this tariff is expected to reach £1,638 for dual-fuel customers paying by direct debit. This figure aligns with the January 1st price cap level, offering transparency and predictability in a volatile market. The plan is open to existing and new customers using direct debit, cash, cheque, or Pay As You Go, with sign-up options available online or via the EDF app.
Rich Hughes, EDF’s Director of Retail, highlighted the inclusivity of the new approach: “Discounting standing charges instead of unit rates ensures all customers see the same financial benefit, regardless of how much energy they use. When discounts are applied to unit rates instead, the amount a customer saves will fluctuate based on their consumption.”
Promoting Fairness Amidst Market Uncertainty
EDF’s innovative tariff also signals a shift towards fairer energy pricing. Standing charges, which cover the costs of maintaining the energy supply network, have traditionally been criticised for being unavoidable expenses. By applying discounts to this fixed component, EDF ensures that customers on Pay As You Go meters—often among the most financially vulnerable—receive the same savings as those with higher consumption levels.
The new tariff comes at a time when 80% of UK households remain on standard variable tariffs. EDF’s strategy provides an alternative for consumers seeking stability and relief in a market subject to frequent price fluctuations.
The tariff’s structure also reflects EDF’s sustainable purchasing practices. By buying energy in advance, the company is able to offset costs and pass savings directly to customers. This approach represents a step forward in balancing affordability with environmental and economic responsibility.
With sign-ups available for a limited time, EDF’s Simply Tracker Extra tariff positions itself as a practical solution for households navigating the UK’s challenging energy landscape.
