EDF has launched the “cheapest” energy tariff as Ofgem prepares to announce an expected price cap increase later this month.
The supplier’s forecasting service predicts energy bills will rise by £19 from January 2025 compared to October’s levels.
The move comes amid continued volatility in global energy markets, which have seen significant fluctuations since the peak of the 2022 energy crisis.
While prices had previously dropped to £1,568 earlier this year, October saw a 10 per cent increase in the price cap due to ongoing geopolitical tensions.
EDF’s new Simply Fixed Direct 1y Nov25 tariff is priced at £1,588 for typical energy users paying by direct debit.
The deal comes with no exit fees when customers sign up directly through EDF. A smart meter is not required to access the tariff.
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Energy suppliers, including EDF, are launching tariffs
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However, the company warns the deal could be withdrawn at any time due to volatility in global wholesale prices.
EDF has consistently offered some of the cheapest fixed rate deals among major suppliers throughout this year, including their recent Sunday Saver offer which provides up to 16 hours of free electricity weekly.
Rich Hughes, director of Retail at EDF, said: “At this time of year people are using more energy and are more concerned about the cost of their energy bill.
“We want to help in any way we can and have taken advantage of wholesale prices dropping to offer another market-leading deal.”
He added that with most customers on standard variable tariffs likely facing another increase in January, those customers “could benefit from signing up to this tariff.”
The price cap typically increases during winter months, though additional factors are influencing January’s predicted rise.
David Edmonds, the head of Pricing and Valuations in Wholesale Market Services at EDF, explained the market pressures.
“The American election and the uncertainty it brings for global gas prices as well as conflicts in the Middle East, and between Russia and Ukraine, continue to cause volatility in global wholesale energy markets,” Edmonds said.
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The energy supplier is offering customers support GETTY He predicts the energy price cap will rise to £1,736. The forecast reflects the complex geopolitical factors currently affecting global energy prices.
EDF is also offering alternative pricing options for customers, including a 12-month tracker tariff. This tracker tariff stays £50 below the price cap, with £25 savings per fuel coming from standing charges rather than unit prices.
The company says this ensures equal financial benefits for all customers, including those with low energy consumption or Pay As You Go meters.
In addition, EDF has enhanced its referral programme until Sunday. Customers can now earn £75 for each successful referral, while referred friends receive £50 cashback.