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EDF customers 'could get £150 back' in new change

EDF customers 'could get £150 back' in new change
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EDF customers 'could get £150 back' in new change EDF is offering eligible customers a discount EDF customers could pocket a handy £150 boost after the energy supplier launched a new trial designed to cut the controversial standing charge. The company is offering qualifying customers a £6.25 monthly discount per fuel, deducted directly from their standing charge - the fixed daily cost households face simply for being hooked up to gas and electricity supplies. This comes in addition to...

EDF customers 'could get £150 back' in new change EDF is offering eligible customers a discount EDF customers could pocket a handy £150 boost after the energy supplier launched a new trial designed to cut the controversial standing charge. The company is offering qualifying customers a £6.25 monthly discount per fuel, deducted directly from their standing charge - the fixed daily cost households face simply for being hooked up to gas and electricity supplies. This comes in addition to existing savings through EDF's FreePhase tariffs, with the provider stating that customers who've switched to the smart, time-of-use plan have saved an average of £152 in just the first five months of this year, despite volatile wholesale energy costs. Importantly, there are no penalties for customers who wish to leave the trial if it doesn't suit them. The initiative follows growing calls for the energy sector - and watchdog Ofgem - to reform standing charges, which now consume over £300 annually from the average household's bill before any actual energy is consumed. Campaign groups have consistently argued that these charges disproportionately hit low-income and low-usage homes, including elderly residents and those with second properties who struggle to reduce their bills regardless of their conservation efforts. Money Saving Expert founder Martin Lewis has been amongst the loudest voices of opposition, previously disclosing that standing charge complaints dwarf those about any other element of energy billing and has spent years pushing for a reduced, or even zero, standing charge alternative. Ofgem announced earlier this year that EDF, along with British Gas, E.ON and Octopus, would participate in a groundbreaking pilot scheme offering reduced standing charge tariffs to eligible customers, with around 150,000 households across the country set to benefit. The regulator indicated the trial should slash at least £150 from the standing charge element of dual-fuel bills, although unit rates are expected to increase to offset this. Mr Lewis has previously warned that such deals fall outside the energy price cap, raising concerns it could disadvantage vulnerable customers who seldom compare deals or change supplier. Callum Morgan, Product Design Expert for Smart Tariffs at EDF, said the firm remained committed to discovering new ways to help customers reduce their energy costs. "It is important that we and Ofgem continue to look at ways we can help all of our customers reduce their bills, so we are pleased to offer this trial tariff, focused on helping lower users save," he said. "Combining the trial with our FreePhase product gives customers a real opportunity to make more sizable savings which we hope will make a real difference." Through FreePhase Dynamic, electricity is divided into three pricing tiers: a discounted "green" overnight rate running from 11pm to 6am, a mid-range "amber" band covering most daytime and evening hours, and a higher-cost "red" peak band between 4pm and 7pm. Prices are refreshed daily based on wholesale costs, with the following day's rates announced beforehand so families can plan accordingly - operating the washing machine, dishwasher or charging an electric vehicle when electricity is most affordable. For those who favour stability, EDF is also providing FreePhase Static, which employs the same three-tier structure but fixes unit rates for an entire year. EDF stated off-peak "amber" rates under the static arrangement were up to 10 per cent lower, and overnight "green" rates up to 37 per cent lower, than the previous month's standard variable tariff. New customers can register through EDF's current FreePhase online system and express their interest in the trial, while existing FreePhase customers can also apply to participate. The introduction is likely to increase pressure on competing suppliers to do likewise, as families continue to struggle with soaring bills and demands intensify for a fundamental overhaul of how standing charges are imposed.
EDF (ORG) FreePhase (ORG) Ofgem (PERSON) Martin Lewis (PERSON) British Gas (ORG) Lewis (PERSON) Callum Morgan (PERSON) FreePhase Dynamic (ORG)
Originally published by Daily Mirror Read original →