The energy firm says its FreePhase tariff comes with different rates that reflect daily wholesale energy changes
EDF has introduced a new energy tariff with three different pricing rates.
The energy firm says its FreePhase tariff comes with different rates that reflect daily wholesale energy changes. There are three time-of-use rates – red (peak), amber (off-peak), and green (night) – with the idea being that customers will save money by switching their energy usage to cheaper times of the day.
EDF claims customers can save up to £187 a year on their electricity bill compared to standard variable rates. Red peak rates kick in from 4pm to 7pm, while the amber off-peak period is from 6am to 4pm and 7pm to 11pm, and green is from 11pm to 6am.
EDF is launching two versions of the tariff. There is FreePhase Dynamic, which sees unit rates go up and depending on wholesale electricity prices. This offers off-peak rates up to 30% cheaper than the standard variable tariff, and night rates up to 44% cheaper.
It comes with a maximum price cap of 75p/kWH even if wholesale prices go higher. There is also FreePhase Static comes with rates that are fixed for 12 months.
On this tariff, the off-peak (amber) rates are around 16% cheaper, while night rates (green) are up to 35% cheaper compared to the standard variable tariff.
Both FreePhase tariffs require a smart meter that sends readings every 30 minutes, and customers are required to pay by Direct Debit. There are no exit fees for leaving the tariff early.
Customers will also be rewarded with free electricity when wholesale market prices go negative. This is typically when there is a surplus of renewable energy and when electricity demand is low.
With FreePhase Static, customers will be credited energy back into their account, while Dynamic customers won’t be charged for any electricity you use during the free electricity period.
It is estimated that 192 hours of equivalent free electricity was available over the last year. Customers can sign up through the EDF website.
Rich Hughes, Director of Retail at EDF, said: “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.
“For those who prefer more certainty or are new to time-of-use tariffs, there’s a static version with three fixed rates for the year, so customers can set and forget.
“Customers are also rewarded with free electricity periods when prices go negative, saving them both cash and carbon.”
It comes as energy bills have just gone up again, with the Ofgem price cap rising from £1,720 to £1,755 for a typical dual fuel household paying by direct debit.