What Happened
EDF has announced a significant reduction in its annual standing charges by £100, as part of its Simply Tracker Extra Jun27 tariff. This new tariff will undercut Ofgem’s price cap by £100, offering a more affordable option for customers.
Why It Matters
The reduction in standing charges, which are fixed daily fees covering the cost of supplying electricity and gas, is expected to decrease by £13.30 a year when Ofgem announces its latest price cap level on February 25. This move is particularly beneficial for low energy consumers, as all customers signing up for the Simply Tracker Extra Jun27 tariff will receive the same financial savings, regardless of their energy usage.
What’s Next
With the predicted price cap level set at £1,640 starting 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 regarding the government’s support leading to a decrease in the price cap, which will ultimately benefit consumers.
