EDF has launched a new energy tariff, Simply Tracker Extra Apr26, designed to provide significant savings for customers. This tracker tariff aims to consistently undercut Ofgem’s price cap by £100 annually, achieved through a £50 discount on both electricity and gas standing charges. This approach, focusing on standing charges rather than unit rates, ensures that all customers receive equal benefits, regardless of their energy consumption. This is particularly advantageous for low-energy users and those with prepayment meters, who often face disproportionately high standing charges compared to their usage. The tariff also provides price predictability for consumers concerned about fluctuating energy costs.
Standing charges are fixed daily fees included in energy bills, covering the costs of supplying energy to homes. These costs encompass network maintenance, operational expenses like metering and billing, and government-mandated social and environmental programs. Importantly, these charges remain constant regardless of a household’s energy consumption. While standing charge rates vary based on location, payment method, and meter type, the new EDF tariff applies the same discount across the board, guaranteeing a £100 saving for all customers. This stands in contrast to other tariffs where the savings are tied to unit rate discounts, which disproportionately benefit high-consumption households.
The decision to discount standing charges directly addresses concerns raised about the rising cost of these charges, particularly as energy unit costs have also increased. Critics argue that high standing charges unfairly penalize those who actively reduce their energy usage, as they still face significant fixed costs. EDF’s approach aims to alleviate this burden, offering consistent savings for all customers, regardless of their consumption levels. This also incentivizes energy efficiency, as customers can reduce their overall bills further by lowering their usage without being penalized by high standing charges.
EDF’s new tariff is positioned as the cheapest tracker tariff currently available. Based on the January 1 price cap, the company estimates an average annual dual fuel bill of £1,638 for customers paying by direct debit. This represents a considerable saving compared to the standard variable tariff and other tracker tariffs on the market. Furthermore, the tariff includes relatively low exit fees of £25 per fuel, providing flexibility for customers who may wish to switch to another tariff in the future. Industry experts acknowledge the rarity of such competitively priced deals and suggest that households interested in securing these savings should act quickly, as the offer may be time-limited.
The Simply Tracker Extra tariff presents a compelling option for consumers seeking predictable and substantial savings on their energy bills. The focus on discounting standing charges offers a unique advantage, particularly for low-energy users and those with prepayment meters who typically benefit less from unit rate discounts. The guaranteed £100 saving against the price cap, regardless of price fluctuations, provides added peace of mind for customers concerned about future energy price increases. The relatively low exit fees further enhance the tariff’s appeal, offering flexibility and minimizing the risk for consumers.
Finally, consumers are encouraged to actively compare energy tariffs and switch providers to secure the best possible deals. Using comparison websites can simplify this process and help identify the most suitable tariffs based on individual needs and consumption patterns. While switching may seem daunting, the process is generally straightforward and can lead to significant savings, potentially amounting to hundreds of pounds annually. The availability of competitive tariffs like EDF’s Simply Tracker Extra underscores the importance of regularly reviewing energy deals and taking advantage of opportunities to reduce costs and ensure predictable energy pricing.
