EDF Energy customers can save £100 on their annual energy bill after a daily fee has been cut.
The energy supplier, which serves more than five million UK households, has slashed its standing charges by £100 with a new tracker tariff.
The Simply Tracker Extra Apr26 tracks Standard Variable prices to always guarantee customers saving £100 against Ofgem’s price cap.
The price cap, which changes every three months, increased by 1.2% on January 1 taking average household energy bills to £1,738 – up from £1,717 – and is forecast to go up again by a further 3% in April.
But EDF says with its new one-year, fixed term tracker tariff, customers are guaranteed to make savings and will pay less than the price cap rate.
As the tariff tracks Standard Variable prices, it will consistently undercut the price cap by £100, offering guaranteed savings of £50 per fuel, with the discount applied through standing charges.
Standing charges are fixed daily fees that are added to your energy bill by suppliers, regardless of how much energy you use. But by discounting standing charges instead of unit rates, all EDF customers who sign up to its new tracker will see the same financial benefit regardless of their energy usage – even if they are low energy consumers or on a Pay As You Go meter.
EDF says the discount is made possible because it buys energy in advance, taking the savings made on energy costs and applying them to standing charges to ensure everyone can benefit.
The supplier explains: “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.
“Through discounting standing charges, EDF guarantees the same discount for all customers signed up to its Simply Tracker Extra tariff.”
Based on the January 1 price cap level, the new tariff offers an annual average bill cost of £1,638 for a dual fuel customer paying via direct debit – £100 less than Ofgem’s price cap.
Rich Hughes, Director of Retail at EDF, said: “With our new tracker tariff, customers can rest assured that no matter what happens with energy prices over the next year, they will always save £100 against the price cap.
“By discounting standing charges, the tariff also ensures all customers benefit equally from predictable cost savings, while supporting those that are already taking steps to reduce their carbon footprint and improve energy efficiency.”
Existing customers can sign up to the tracker via their MyAccount online or on the EDF app, while new customers can sign up online. The tariff is available to new and existing customers on Direct Debit, Cash Cheque and Pay As You Go for a limited time only.
