EDF launched a one-year fixed tariff on 30 April 2024, priced at £1,580 a year for a typical household and available to new and existing customers1. The supplier said the tariff, Essentials 1Yr May25, is £110 below the current price cap of £1,690 and is the cheapest of the large suppliers on a straight price-for-price comparison, not including add-ons1.
EDF said the tariff is predicted to stay competitive against the cap until April 2025, based on Cornwall Insight's most recent projections, and that customers will save an average of £50 over the year against Cornwall's projections for Q3 and Q4 2024 (£1,560 and £1,631) and Q1 2025 (£1,634)1. Prices are based on Ofgem's Typical Domestic Consumption Values of 2,700 kWh of electricity and 11,500 kWh of gas a year1.
"At EDF, we're passionate about all our customers saving cash on their energy bills. That's why we're pleased to introduce our best fixed-price tariff since 2021, now £110 lower than the current industry cap. By signing up for this tariff, customers can beat the likely price cap rises this winter and enjoy savings on their energy bills, but they should act now before it's too late as the deal ends on 9th May."
Customers who sign up must have a smart meter or agree to have one installed, at no upfront cost for the meter or its in-home display1. EDF said customers using its Energy Hub platform, accessible through MyAccount or the EDF app, can reduce their bills by up to £41 a year, based on a sample of 2,000 customers who started using Energy Hub between January and March 2022 and logged in five or more times between April 2022 and April 20231.
| Item | Figure |
|---|---|
| Essentials 1Yr May25 price | £1,580 a year |
| Current price cap | £1,690 |
| Difference to cap | £110 below |
| Average saving over the year | £50 |
| Cornwall Insight projection, Q3 2024 | £1,560 |
| Cornwall Insight projection, Q4 2024 | £1,631 |
| Cornwall Insight projection, Q1 2025 | £1,634 |
Why it matters for households
A fixed tariff sets the unit rates and standing charges for its term, so the household bill does not move with the cap for the length of the fix. The cap itself is not a ceiling on what a household pays: it limits what a supplier can charge for each unit and for standing charges, so a home that uses more than the typical figures pays more than £1,690, and one that uses less pays less. The comparison EDF gives is against the cap level, not against any individual household's current bill.
The gap between the £1,580 fix and the projected cap levels for the rest of 2024 and early 2025 is narrow, between £20 and £54 on the published projections, and projections are not guarantees. The £50 average saving EDF quotes depends on the cap moving as Cornwall Insight expects. A household that fixes and then sees the cap fall below the fixed price would pay more than it would have on a variable tariff, and exit fees on fixed tariffs may apply to leaving early, though EDF's announcement does not state whether this tariff carries one. That has not been reported.
The smart meter condition matters for energy independence in a practical sense: a smart meter is what gives a household half-hourly visibility of its own consumption, and it is the prerequisite for time-of-use and export arrangements. EDF's own figure of up to £41 a year in savings from usage monitoring rests on customers actually looking at the data. For homes weighing a fix against the alternatives, the relevant comparisons are set out in fixed tariff vs staying on the price cap and fixed vs variable energy tariff.
What happens next
The deal ends on 9 May 2024, EDF said1. The next cap levels, and whether the projections EDF cites hold, will be confirmed by Ofgem in the usual way; the announcement does not give a date for that decision.
Sources1 cited
- New EDF tariff cheapest of large suppliers | EDF, edfenergy.com