EDF hands customers £130 as it removes hidden fee | European Markets

EDF Vitality is offering prospects the possibility to avoid wasting £130 on their vitality payments – and it’s scrapped a hidden charge too.

The gasoline and electrical energy provider is offering a new tariff which guarantees to be £130 cheaper on average than the present Ofgem price cap.

The regulator has raised costs twice in a row, in October and January, by a complete of 11.2% and is forecast to increase costs again in April.

Now, EDF is urging prospects to change and cut their payments by transferring to its Merely Fastened Direct 1Yr tariff, which has a typical invoice price of £1,608 per 12 months. EDF says the tariff is its least expensive repair and as an added bonus, it has no hidden exit charges.

By comparability, Ofgem’s price cap price is £130 more costly at an average of £1,738 per 12 months, till March 31, 2025.

Ofgem critiques its price cap each three months and forecasts recommend it is going to rise again in April, that means those that change to EDF’s tariff might doubtlessly make an even greater saving.

EDF mentioned: “From 1 October to 31 December 2024 the energy price cap is £1,717 a year. The energy price cap is increasing to £1,738 a year for the period between 1 January and 31 March 2025. Our Simply Fixed Direct 1Yr Jan26 fixed tariff has a typical bill price of £1,608 a year – £130 cheaper than the Ofgem cap between 1 January to 31 March 2025.

“The ‘typical’ bill price of the Ofgem price cap assumes no changes in price over a full year. In reality, the price cap changes every three months. Fixed tariff rates remain the same for the duration of the tariff and are not covered by the energy price cap.”

Analysts Cornwall Perception forecast a 3% hike to the price cap in April because of turbulent wholesale markets, taking annual payments above the present price of £1,738.

Ofgem has already urged prospects to take benefit of rising selection amongst suppliers and search for the best deal to help keep their payments down.

Households ought to be conscious that the price cap doesn’t restrict complete payments as it’s essential to pay for the quantity of vitality you employ – so those that use more, pay more.

The price cap increase additionally comes as tens of millions of pensioners are dealing with a winter with much less authorities help, after a Labour rule change scrapped the Winter Gasoline Fee – which is price up to £300 – from those that don’t obtain Pension Credit score or different means-tested advantages. The change has seen round 10 million pensioners miss out on the important help this winter.

Uswitch vitality spokeswoman Elise Melville advises: “Now is also an ideal time to look at switching to a new energy tariff, as there are a range of fixed deals currently available that are cheaper than the January price cap.

“By opting for a fixed deal, you’re locking in those rates for the duration – which means households could have price certainty and avoid the ups and downs of the price cap. Make sure you are happy with how long the contract lasts and any exit fees for leaving early.”