What Happened
EDF has announced a significant reduction in its annual standing charges by £100, effective with the launch of its Simply Tracker Extra Jun27 tariff. This new tariff will undercut Ofgem’s price cap by £100, providing customers with guaranteed savings of £50 per fuel on standing charges.
Why It Matters
Standing charges are fixed daily fees that cover the cost of supplying electricity and gas to homes. EDF’s decision to discount these charges rather than unit rates ensures that all customers, including low energy consumers, will benefit from the same financial savings. The company predicts that standing charges will decrease by £13.30 a year when Ofgem announces its latest price cap level on February 25.
What’s Next
Based on EDF’s anticipated price cap level of £1,640 effective April 1, the new tariff will result in an average annual bill of £1,540 for dual fuel customers paying via direct debit. Philippe Commaret, Managing Director of Customers at EDF, expressed optimism about the government’s support leading to a decrease in the price cap, which will ultimately benefit consumers.
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