EDF launches new fixed energy tariff CHEAPER than April’s price cap

Energy supplier EDF has launched a new fixed-rate tariff which undercuts April’s energy price cap hike.

EDF’s new tariff, called SimplyFixed Jun26v5, lasts for 16 months and would cost a household using the average amount of energy £1,642 per year.

This is a £96 saving compared to the current price cap, and a £207 saving against the new price cap level from 1 April. 

Energy regulator Ofgem’s average price-capped bill is currently £1,738, but will rise to £1,849 a year from April 2025.

The latest cap hike means a household using the typical amount of energy will see an increase in in bills of around £111 a year – at least until Ofgem next updates its price cap in July.

Most households remain on deals governed by Ofgem’s price cap, known as standard variable tariffs, after cheaper fixed deals were pulled during the energy crisis. 

While fixed deals are now available, they are still limited in number compared to the period before prices spiked.  

New tariff: EDF has launched a new energy deal which undercuts April’s price cap hike

According to Uswitch data seen by This is Money, EDF’s SimplyFixed Jun26v5 tariff is the sixth cheapest on the market at present, though different deals are cropping up regularly.

Rich Hughes, director of retail at EDF, said: ‘We know many households are concerned about energy bills rising again next month which is why we want to help in any way we can.

‘Over 175,000 of customers on our tracker tariffs have already saved £3.5million by switching. 

‘With our new market-leading deal, we’re offering customers the cheapest rates among major suppliers as well as ensuring price stability, giving households peace of mind over their energy costs.’

EDF said customers signing up or switching to its SimplyFixed Jun26v5 tariff do not need a smart meter. If customers sign up to the tariff directly through EDF there are no exit fees, the energy provider added.

It warned that the deal could be scrapped ‘at any time due to volatility in global wholesale prices.’

For customers who prefer not to fix, EDF is also offering a 16-month tracker tariff, Simply Tracker Jun26. 

The tariff tracks at £50 below the price cap, with that £25 per fuel saving coming from standing charges rather than unit prices.

According to EDF, this ensures customers who sign up to the Simply Tracker Jun26 tariff ‘will see the same financial benefit even if they are low energy consumers.’

With the energy price cap going up again on 1 April, now could be a good time to ditch and switch your energy supplier or see what deals your existing provider has on offer. 

A number of deals currently beat the April 2025 price cap.

In data provided by Uswitch to This is Money, fixed tariffs by Outfox The Market, Home Energy and Ecotricity offer cheaper deals than EDF’s new fixed tariff.

Deals: Data provided by Uswitch showing the cheapest fixed rate energy deals

What is the energy price cap?

The price cap is a limit, set by Ofgem, which caps the maximum amount an energy firm can charge for the units of gas and electricity consumers use.

It also limits how much households pay in standing charges – the daily fees paid regardless of how much energy is used.

The price cap was introduced in January 2019 to prevent energy firms overcharging customers on variable-rate tariffs.

Households who come to the end of a fixed tariff and don’t change to a new one will fall on to a standard variable tariff, which follows the price cap  

From 1 April, the average household on a variable-rate tariff paying by direct debit will pay £1,849 a year for gas and electricity due to the price cap.

For those with prepayment meters, average price-capped yearly energy bills will rise to £1,803 a year.

Speaking to This is Money, Ben Gallizzi, energy expert at Uswitch.com, said: ‘The energy price cap may be going up, but most households can avoid the hike. 

‘There are some great fixed deals available that can save you a significant amount against the price cap both now and when it rises in April.

‘Households on standard tariffs that follow the price cap could currently save around £239 by picking the cheapest fixed deal on the market.

‘Energy prices continue to be volatile, but a fixed deal means you can lock in lower rates for a whole year or longer.

‘It only takes a few minutes to run a comparison, so it’s worth seeing if you can beat the price rise.’

Alex Belsham-Harris, head of energy consumer markets at Citizens Advice, told This is Money: ‘Our recent analysis found energy network companies made billions in excess profits while households have faced soaring bills, and it’s only right this money be used to help fund better targeted bill support and much-needed debt relief.

‘People may also be able to save by switching to a cheaper deal. To get the best possible deal, people should speak to their supplier about which tariffs are available and compare these with other suppliers. 

‘Before switching, it’s worth finding out how good the new supplier’s customer service is using the Citizens Advice Star Rating, and checking if you’ll need to pay any exit fees.’