Energy giant with 5million customers launches cheapest fixed deal that’s £149 less than the price cap – is it worth it?
A MAJOR energy supplier has launched a market-leading energy-only fixed price tariff that is £149 cheaper than the price cap.
EDF’s “Essentials Fixed 1y Oct25” is £1,568 a year for a typical energy user paying by direct debit, making it £149 cheaper than the upcoming cap.
The average standard variable energy bill is set to rise by 10% to £1,717 on October 1 under the new price cap.
The deal is available to new and existing who have a smart meter or agree to have one installed.
A fixed energy tariff charges customers the same rate for their gas and electricity each month until their contract ends.
This means you are locked into the price even if the cap goes up or down.
In comparison, a standard variable tariff can go up or down according to the price cap which is set by Ofgem, the industry regulator.
The price cap changes every three months and EDF predicts that it will hit £1,690 in January before falling back down to £1,676 between April and June.
The energy supplier said that locking into this deal will save customers £122 over the course of this winter.
But it is impossible to guarantee that this will be the case as there is a chance that the price cap may be higher or lower.
Meanwhile, due to volatility in the energy market, EDF may withdraw this deal at any time.
Elise Melville, energy expert at Uswitch.com, said: “EDF’s new Essentials tariff could be a great option for households that want to fix their energy costs to beat the price rise coming on October 1.
“It’s worth considering a fixed deal if you want to know what you’ll be paying from month to month.
There are several fixed deals on the market that can save you money compared with the price cap.”
How do other deals compare?
Octopus Energy is offering the next cheapest deal, at £1,599 a year for a dual fuel tariff.
The “Octopus 15M Fixed September 2024 v3” deal is £118 cheaper than the current energy price cap and is available directly from Octopus Energy.
What energy bill help is available?
THERE'S a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
Meanwhile, households which lock into the “Co-op 15M Fixed September 2024 v2” from Co-Op Energy could save £118 against the October price cap.
The deal is also £1,599 a year.
How do I sign up?
Existing customers can sign up to the new tariff via the MyAccount tab on the EDF website.
Meanwhile, new customers can join EDF through its website.
But customers who sign up to this tariff will need to have a smart meter or agree to have one installed.
A smart meter gives real-time information about your energy consumption, whereas traditional meters require you to manually take a reading.
There is no upfront cost to get a smart meter and you do not need to pay for the in-home display it comes with.
This tariff is a one year deal, which means that once you are locked in you will not be able to leave for 12 months without paying a fee.
If you want to leave before the contract ends then you may be charged an exit fee of around £25.
At the moment this tariff works out to be £149 a year cheaper than the current price cap.
This is great if the price cap continues to rise as forecast as you would save even more money.
But if the price cap falls then you could end up paying more.
Before applying for this deal make sure to shop around to check that it is the best on offer for your family and budget.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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