EDF and EON have launched experimental 'low Standing Charge' tariffs for a limited number of customers, potentially saving households up to £315 annually. Standing Charges – the fixed daily fee for having gas and electricity supply, regardless of usage – currently make up around £315 of the average annual energy bill. The new tariffs aim to reduce this burden, particularly for low-use households.
Trial Details and Tariff Structures
E.on's tariff features higher unit rates for each kilowatt-hour of energy used, making it most beneficial for very low-use households where Standing Charges constitute a larger proportion of the total bill. Medium and higher users could end up paying more overall under this structure. In contrast, EDF's tariff employs variable electricity unit rates at different times of day, encouraging consumption outside peak hours but potentially charging more during busy periods.
Money Saving Expert, founded by Martin Lewis, explained: "E.on's tariff has higher rates for each unit of energy you use. That means it's most likely to work for very low-use households – where Standing Charges make up a higher proportion of the total bill. Medium and higher users could end up paying more overall."
Expert Comments and Customer Benefits
Callum Morgan, Product Design Expert for Smart Tariffs, said: "It is important that we and Ofgem continue to look at ways we can help all of our customers reduce their bills, so we are pleased to offer this trial tariff, focused on helping lower users save. Combining the trial with our FreePhase product gives customers a real opportunity to make more sizable savings which we hope will make a real difference."
For customers seeking predictable pricing, EDF offers FreePhase Static, which locks unit rates for a year using a three-band system (red, amber, green). Under FreePhase Static, off-peak (amber) prices were up to 10% lower, and night-time (green) rates were up to 37% cheaper than the previous standard variable tariff.
Eligibility and Enrollment
New customers can join the trial through the existing FreePhase online sign-up process if eligible. Existing FreePhase customers can also request to join the trial. The initiative represents a step toward more flexible energy pricing aimed at reducing bills for households, particularly those with lower energy consumption.
