New analysis by EDF has identified that in the first 3 months of the year customers on its dynamic electricity time of use tariff have already saved an average of £112[1] so far, despite volatility in wholesale prices.
Analysing its FreePhase tariff, which follows daily pricing, compared to the quarterly price cap rate, EDF has found that customers on FreePhase achieved an average price of 19.67p/kWh compared to 27.69p/kWh on Ofgem’s price cap so far this year – almost a 30% difference. This is largely due to the risk that is priced into forward hedging on long-term products such as Standard Variable Tariffs when compared to setting prices a day ahead with FreePhase Dynamic.
EDF’s FreePhase Dynamic tariff works by alerting customers the day before what their prices will be for the next 24 hours into three time bands: green (super off peak, 11pm-6am), amber (off peak 6am-4pm and 7pm-11pm), red (peak 4-7pm). Customers can then choose to shift their electricity use, such as laundry, cooking and charging devices, to make the most of cheaper rates, but this new analysis shows that even without making a shift, there are savings to be made.
FreePhase Dynamic offers rates 28% cheaper than SVT
The tariff offers average off-peak rates 28% cheaper than the standard variable tariff, and 40% cheaper average night rates[2]. It also includes a 12-month maximum-price guarantee that unit rates will never go above 75p/kWh, regardless of any increase to wholesale prices. Customers on FreePhase Dynamic can track their day-ahead prices published on EDF’s FreePhase Dynamic price tracker, and customers also benefit from regular free electricity periods.
Joe Souto, Director of Retail at EDF, said: “FreePhase is showing that households can take advantage of cheaper electricity prices even during periods of market volatility. Customers automatically benefit from cheaper day‑ahead electricity prices without lifting a finger, and for those who shift their usage away from the peak hours, are rewarded with even greater savings. Already this year, FreePhase customers have collectively saved £54,000 compared to the price cap, and just last week alone customers got 37 hours of free electricity – more than a whole day of free power.
“Unlike some time-of-use products that require people to track dozens of price changes each day, FreePhase keeps things simple. With just three daily prices, customers can plan with confidence and stay firmly in control of what they pay.”
EDF also offers FreePhase Static for anyone who wants more predictable pricing. It uses the same three-band system (red, amber, green), but the unit rates are locked in for a year. With FreePhase Static, off‑peak (amber) prices are up to 17% lower, and night-time (green) rates can be up to 43% cheaper than the standard variable tariff.
FreePhase offers free electricity periods
All FreePhase customers can also take advantage of free electricity during periods when there’s an excess of renewable generation and electricity demand is low. To date, FreePhase customers have been given 202 hours of free electricity.
Both FreePhase tariffs require a smart meter that sends readings every 30 minutes, and customers are required to pay by Direct Debit[3]. There are currently no exit fees for leaving the tariff early.
Customers can sign up to start saving and using energy smarter here: https://www.edfenergy.com/electricity-FreePhase
[Frequently Asked Questions]
How do customers sign up?
Customers can sign up to start saving and using energy smarter here: https://www.edfenergy.com/electricity-FreePhase
What times do the rates change?
The FreePhase unit rate timings are:
- Red (peak rate, highest): 4pm to 7pm
- Amber (off-peak): 6am to 4pm; 7pm to 11pm
- Green (night rate, lowest): 11pm to 6am
When will customers get free electricity?
Customers will get periods of free electricity with both of our FreePhase tariffs when lots of renewable electricity is being generated – and electricity demand is low. We’ll send customers a text message a day before a free period is happening.
With FreePhase Static, we’ll credit customers for any electricity they’ve used during their free electricity periods, whilst Dynamic customers won’t be charged for any electricity you use during the free electricity period.
How is FreePhase different from other multiple rate tariffs?
FreePhase offers three-rates: red (peak), amber (off-peak), green (night). FreePhase Dynamic prices are updated daily to reflect the actual prices of electricity. Whilst the electricity market is priced into 48 half-hourly periods, FreePhase Dynamic takes the average for the red, amber and green periods – so customers only have to track three prices a day. FreePhase Dynamic is the only three-rate tariff in the market that tracks daily wholesale prices.
In addition, both FreePhase tariffs will provide customers with free electricity when electricity prices go negative.
How can customers shift their energy usage?
Some ways customers can shift their electricity usage away from peak times include:
- Putting the dishwasher on at off-peak or night times
- Avoid using the washing machine and tumble dryer during peak times
- Cook outside of peak times
- Charge electric car outside of peak times
- Unplug devices and chargers and use battery power instead
- Put aside gaming consoles and try something new as a family
For more information contact: media@edfenergy.com
