EDF has launched a new energy tariff featuring three distinct pricing tiers. The energy provider’s FreePhase tariff offers customers varying rates corresponding to daily shifts in wholesale energy prices. These rates are categorized into red (peak), amber (off-peak), and green (night) time-of-use rates, aiming to help consumers save money by adjusting their energy consumption to cost-effective time periods.

According to EDF, customers can potentially save up to £187 annually on their electricity bills compared to standard variable rates. Peak red rates are effective from 4pm to 7pm, while off-peak amber spans from 6am to 4pm and 7pm to 11pm, with night green rates running from 11pm to 6am.

The company is rolling out two versions of the tariff – FreePhase Dynamic and FreePhase Static. FreePhase Dynamic adjusts unit rates based on wholesale electricity prices, offering off-peak rates that are up to 30% cheaper than the standard variable tariff and night rates up to 44% cheaper. It comes with a maximum price cap of 75p/kWH, even if wholesale prices surge. On the other hand, FreePhase Static offers fixed rates for a year, where off-peak rates are approximately 16% lower and night rates up to 35% cheaper than the standard variable tariff.

Both FreePhase tariffs necessitate a smart meter for real-time readings every 30 minutes and require payment via Direct Debit. There are no penalties for early termination of the tariff. Additionally, customers stand to receive free electricity during periods when wholesale market prices turn negative, typically occurring when there is surplus renewable energy and low electricity demand.

Under the FreePhase Static scheme, customers receive energy credits back into their accounts, while Dynamic customers do not incur charges for electricity usage during the free electricity period. Over the past year, an estimated 192 hours of equivalent free electricity were accessible. Interested customers can sign up for the tariff via the EDF website.

EDF’s Retail Director, Rich Hughes, expressed enthusiasm about the FreePhase launch, highlighting the simplicity it offers in monitoring daily energy price fluctuations and adjusting electricity usage accordingly. He also emphasized that customers can benefit from free electricity periods during negative price instances, resulting in savings and reduced carbon footprint.

This initiative coincides with recent increases in energy bills, with the Ofgem price cap climbing from £1,720 to £1,755 for the standard dual fuel household paying via direct debit.