EDF introduced Simply Fixed Direct 1y Jan26 on 21 November 2024, priced at £1,608 a year for a typical average energy user paying by direct debit1. The supplier says the deal is £130 lower than January's price cap and describes it as the cheapest energy-only 12-month fixed tariff among major suppliers1. A smart meter is not required to sign up1.
The comparison rests on a forecast rather than a confirmed figure. EDF's own price cap forecasting service predicts that Ofgem's announcement, due the following day, will show the cap rising by £21 from 1 January 20251. The cap had fallen to £1,568 earlier in the year before rising by 10% on 1 October1. EDF states that the cap is predicted to rise again in April and then fall in July, but adds that there is less certainty around those periods because wholesale prices may change1.
EDF is also offering a 12-month tracker tariff that tracks £50 below the price cap, with a £25 per fuel saving coming from standing charges rather than unit rates1. EDF says this means those who sign up see the same financial benefit even if they are low energy consumers or on a Pay As You Go meter1.
On the fixed deal, EDF says there are no exit fees for Simply Fixed Direct 1Yr Nov25 V5 where the customer signs up directly through EDF, but that the deal could be removed at any time because of volatility in global wholesale prices1. The announcement also cites recent cold weather, concerns over gas supplies from Russia, conflict in the Middle East and between Russia and Ukraine, and uncertainty around the American election as factors in the predicted cap increase1.
"With cold weather setting in and the price cap set to increase again, we know people are more concerned about the cost of their energy bill. Just like we have all year, we will keep our prices as low as possible, so we can help and offer again the cheapest priced energy only fixed deal of the major suppliers."
Separately, EDF says it recently launched a Sunday Saver offer giving customers who sign up and cut peak energy use up to 16 hours of free electricity a week, with eight hours free on Christmas Day for those joining December's challenge1.
| Item | Figure |
|---|---|
| Simply Fixed Direct 1y Jan26 | £1,608 a year, typical direct debit user |
| Stated gap to January price cap | £130 lower |
| Predicted January cap change | Up £21 from 1 January 2025 |
| Cap level earlier in 2024 | £1,568 |
| Cap change on 1 October 2024 | Up 10% |
| Tracker tariff | Tracks £50 below the price cap |
Why it matters for households
A fixed tariff sets the unit rate and standing charge for its term, so the bill depends on how much energy a home uses rather than on what Ofgem decides at each cap review. The price cap, by contrast, is a limit on the rates a supplier can charge on a standard variable tariff, not a cap on the total bill. That distinction is set out in our guide to fixed and standard variable tariffs, and the mechanics of the January level are covered under the price cap.
The £130 figure is a forecast comparison, not a settled one. It depends on Ofgem confirming the £21 rise EDF expects, and on a typical household's consumption. Households using less energy than the typical figure, or more, will see a different cash difference. The tracker's saving is structured differently again, sitting in standing charges, which is why EDF says low users and prepayment customers keep the same benefit. Standing charges are fixed daily amounts, so they fall hardest on homes that use little energy; the price cap rates by payment method sets out how those charges differ between direct debit, prepayment and standard credit.
For a household weighing up whether to fix, the relevant questions are the length of the term, the exit terms and what happens at the end of it. EDF's own terms here include no exit fees when signing up directly, but the tariff can be withdrawn at any time1. The wider choice between a fixed rate and staying on the cap is covered in our fixed tariff versus price cap guide, and EDF's other products are set out under EDF tariffs.
What happens next
Ofgem's price cap announcement was expected the day after the tariff launch, with the new level taking effect from 1 January 20251. EDF says the deal could be withdrawn at any time1. No closing date for the tariff has been reported.
Sources1 cited
- EDF launches new price-cap busting 12-month fixed tariff, edfenergy.com