EDF has introduced a new version of its longest-term fixed price tariff, allowing customers to pay the same rate until May 2018.
The new iteration, Blue+Price Freeeeze May 2018, replaces the previous product that fixed prices until July 2017.
EDF recently announced its Blue+Price Promise tariff, which offers the cheapest deal among the Big Six. However, the Big Six’s market share is falling sharply as customers make the switch to smaller competitors, who are cheaper still.
Could you save money by switching to a smaller supplier?
What will it cost me?
EDF says that customers on the new tariff could expect to pay around £1,210 a year on average (based on Ofgem’s typical usage estimates of 3,200kWh electricity, 13,500kWh gas).
While that’s far more expensive than the current cheapest rates on the market, what you’re paying for is the security of knowing that you won’t pay more than that if the price of energy rockets in the next few years.
The supplier also highlighted the fact that you can leave without penalty.
What other long-term deals are out there?
Here’s how EDF’s latest offering stacks up against other long-term tariffs on the market. These are the current iterations of the suppliers’ tariffs and are subject to change.
|
Supplier & Tariff |
Price fixed until |
Average annual cost |
Early exit fees |
|
EDF Blue+Price Freeeeze |
May 2018 |
£1,210 |
None |
|
Utility Warehouse |
April 2018 |
£1,213 |
None |
|
Sainsbury’s Energy Fixed Price |
March 2018 |
£1,333.44 |
£30 per fuel |
|
September 2017 |
£1,169 |
£30 per fuel |
|
|
Scottish Power Fixed Price Energy |
September 2017 |
£1216.59 |
None |
|
36 months from contract start |
£1,165.54 |
£30 per fuel |
|
|
Npower Intelligent Fix |
April 2017 |
£1,310.22 |
£50 per fuel |
|
SSE Fixed Price |
March 2017 |
£1263.22 |
£50 (not per fuel) |
|
British Gas Fixed Price |
January 2017 |
£1,223 |
£50 per fuel |
|
E.ON Energy Fixed 2 Year v5 |
24 months from contract start |
£1,265 |
£10 per fuel |
|
extraenergy Fresh Fixed Price v1 |
October 2015 |
£1,035 |
£25 per fuel |
Table data sourced from suppliers’ online estimates and the lovemoney.com energy comparison engine. Prices are estimated for customers paying by monthly direct debit based on Ofgem defined typical domestic consumption values of 3,200kWh for electricity and 13,500kWh gas per annum.
Quotes based on southern region. Other regional prices may vary.
To get Utility Warehouse’s deal, you also need to take plans for a home phoneline, broadband and mobile.
Generally, the longer you opt to fix your price for, the more you’ll pay. But you may save money as prices creep up in years to come. Early exit fees can be a problem though, particularly if prices fall – some providers charge dual-fuel customers £100 to leave their contracts, which can mean that switching to a better deal isn’t all that beneficial.
Could you save money by switching to a smaller supplier?
Do you think long-term fixed tariffs offer enough security in the long-run, or do they lose out to short-term savings? Let us know your thoughts in the comments below.