Energy companies are pushing to win new customers by offering tariffs that beat the new price cap coming in this winter.
EDF has launched what it claims is the cheapest energy-only fixed tariff among “major suppliers”, which would be the equivalent of £68 cheaper than the Ofgem price cap level coming in next month.
However, it comes with a catch in that it will only be available to households which are fitted with a smart meter and there is an early exit fee of £25 per fuel.
At the same time, consumers are being advised to look at the tariffs from smaller suppliers such as Outfox the Market, which is offering a cheaper option than EDF and other mainstream suppliers.
The average energy tariff will rise by 10 percent up from October 1, which would take the annual bill based on typical use up from £1,568 to £1,717.
However, EDF’s new Essentials Fixed one year Sep25v2 is priced at the equivalent of £1,649, which would be £68 below October’s price cap.
The energy supplier also has a two-year fixed tariff, Sept26v2 which is priced at £1,669 and is again the cheapest energy-only deal of the major suppliers.
Industry experts believe that the price cap on tariffs is likely to rise again by a relatively small amount in January, which potentially means the new EDF deals will offer a bigger saving than the £68 figure claimed.
Rich Hughes Director of Retail at EDF, said: “Energy prices had been decreasing, but we are all too aware that because of increases to the price cap, this will change shortly. We know customers will be concerned and we want to do all we can to help.
“Locking into the cheapest energy-only deal in the market protects them from future upcoming price rises.”
EDF said the tariff is available to new and existing EDF customers but it stressed that it requires a smart meter or agree to have one installed.
The company said: “Installing a smart meter gives customers a range of benefits, such as EDF’s exclusive Energy Hub platform which can be accessed via MyAccount or via the EDF App, where they can see a personalised view of their energy usage.
“EDF has found that customers who use the energy hub to look at their bills are able to actively reduce their bills by up to £41 a year as well as reducing their carbon footprint. Having a smart meter is simple, with no upfront cost for the meter or the in-home display it comes with.”
EDF is also offering a one-year fixed tariff, which tracks at £50 below the price cap, with that £25 per fuel saving coming from standing charges rather than unit, ensuring that those who sign up will see the same financial benefit even if they are low energy consumers or on a Pay As You Go meter.
