EDF Energy has launched a groundbreaking new energy tariff designed to help UK households reduce their electricity costs, with potential annual savings of up to £187.
Understanding the FreePhase Tariff Structure
The energy provider's new FreePhase tariff introduces a three-tier pricing system that reflects daily wholesale energy market changes. This innovative approach features colour-coded rates throughout the day: red for peak hours, amber for off-peak periods, and green for night-time usage.
According to EDF, customers can achieve significant savings compared to standard variable tariffs by shifting their energy consumption to cheaper time slots. The company offers two distinct versions of this tariff to accommodate different consumer preferences.
Dynamic Versus Static Pricing Options
The first option, FreePhase Dynamic, provides rates that fluctuate daily based on wholesale electricity prices. This version offers off-peak rates up to 30% cheaper than standard variable tariffs, while night rates can be as much as 44% cheaper.
For customers seeking price stability, FreePhase Static maintains fixed rates for twelve months. On this version, off-peak (amber) rates are approximately 16% cheaper, while night (green) rates can be up to 35% cheaper than standard variable tariffs.
Peak Hours and Customer Benefits
The tariff structure clearly defines peak and off-peak periods to help customers plan their energy usage effectively. Red peak rates apply from 4pm to 7pm, while amber off-peak periods run from 6am to 4pm and 7pm to 11pm. The cheapest green night rates are available from 11pm to 6am.
Rich Hughes, Director of Retail at EDF, explained the benefits: "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."
He added: "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."
The FreePhase Dynamic option includes a 12-month maximum-price guarantee, ensuring unit rates remain capped even if wholesale prices increase significantly. This safety net provides peace of mind for customers concerned about potential price spikes in the volatile energy market.
