EDF Energy has today announced the start of a new fixed tariff aimed at delivering deeper savings for customers. One of them, the 12-month tariff known as Simply Fixed Direct May26, is £1,549. This is the average price for a dual-fuel direct-debit customer. This offer is available until 11:59 pm on Sunday and presents a compelling alternative for households looking to manage their energy costs effectively.
This new deal has been made in a particularly volatile energy market, heavily influenced by inflation and other economic stresses. Our Simply Fixed Direct May 26 tariff is £148 less than the July price cap of £1,697. It is £300 less than Ofgem’s new price cap of £1,849. It provides a £111 benefit in savings across the coldest winter months. That helps make it an attractive option for consumers seeking stability in the face of rising energy prices.
Ofgem, the energy regulator, has a mandate to periodically set a price cap on household energy bills. This cap is determined by wholesale energy prices plus the costs across a provider’s networks. The price cap is currently £1,849 but is expected to fall to an average of £1,683 in July. Despite the impending fall, EDF’s revised fixed tariff is still significantly cheaper than the upcoming cap. This demonstrates the clear advantage of moving to fixed deals.
Rich Hughes, director of retail innovation at EDF, added that in a highly volatile market it’s key to lock in fixed rates. He added that even though wholesale prices have dropped in recent weeks, international trends could lead to rising prices. He encouraged consumers to look into fixed or tracker tariffs as protection against future price changes.
“While wholesale costs have dropped, the market remains unstable and global factors could push prices up again. Given the volatility, we advise households to consider fixed or tracker tariffs.” – Rich Hughes
This tariff comes at a consequential moment in the energy sector. Currently there are 18 fixed contracts on the market, all of which are priced below the expected July price cap level. This creates an opening for newer households—those who haven’t made the jump to another company in a while.
Bold, an energy expert at Uswitch, highlighted the potential savings consumers have access to. He urges people to act today to position themselves to take advantage of these opportunities. He noted that most people would be better off moving away from default tariffs, usually set by the price cap.
“If you haven’t switched in a year or more, you are probably on a standard deal and your rates are effectively dictated by the price cap.” – Will Owen
Owen suggested that consumers would benefit from significant energy bill savings through moving onto fixed tariffs. Beyond that, he has encouraged households to make the switch as a rational, cost-saving move in these unpredictable times.
“Energy prices continue to be volatile. If you find a deal which beats the current cap and the July prediction, then switching is a no-brainer. It only takes a few minutes to run a comparison, so it’s worth checking what deals are available to you.” – Will Owen
Energy prices are highly volatile due to extreme global economic conditions. At a time of instability in the market, EDF’s Simply Fixed Direct May26 tariff provides a great value competitive alternative for those looking to fix their energy bills for the year ahead. With time running out on this unique offer, consumers are urged to take a look at their alternatives and make the switch.