Energy price war? – Cheapest energy tariff since October 2021 launched | Personal Finance | Finance
The return of a battle between energy companies to win new customers has been triggered by a new market leading tariff offering big savings.
The fixed rate tariff works out at £1,581 a year based on typical use and is the cheapest deal on the market since October 2021.
The deal works out at the equivalent of £347 a year less than the current price cap and £109 – 6.5 percent – less than the figure that comes into effect on April 1.
It is being offered by EDF through the price comparison and switching website Uswitch.com. Existing EDF customers can also access the same fixed rate deal directly with the company.
The launch of the deal brings hope that the energy price crisis triggered by Russia’s invasion of Ukraine in February 2022 could be over.
The move by EDF will put pressure on rival energy firms to match or beat its new tariff, which will be a boost to savvy consumers.
However, customers should be aware that the new cheaper tariff comes with an exit penalty of £75 per fuel – £150 – if they choose to switch to a rival supplier within the 12 month term. The penalty will not apply if customers switch to another EDF fixed tariff.
This week EDF laos launched five new product trials to help customers reduce their carbon footprint by exploring the future uses of solar power, electric vehicles and heat pumps to help save customers both cash and carbon.
Will Owen, energy expert at Uswitch.com, comments: “It’s great to see some competition in the market again, especially from a well-known and highly-rated supplier such as EDF.
“Customers have been under the cosh from sky-high prices for years, so it’s a big step to see tariffs priced lower than the upcoming cap, and the cheapest we’ve seen since late 2021.
“At £1,581 for the average household, this should be worth considering for those wanting to take advantage of falling rates and lock in price certainty for 12 months.
“If you decide to stay put on a standard variable tariff, it’s worth noting you will see your energy costs change every three months in line with the price cap.
“We don’t expect this deal to be available for long, and EDF reserves the right to remove the deal at any time. We’re hopeful this will encourage more suppliers to price competitively to finally give customers choice – and financial relief – on their energy bills.”
