EDF customers using a dynamic electricity tariff have saved an average of £112 over the last three months, according to new analysis from the energy provider. The FreePhase Dynamic tariff, which adjusts prices daily, has proven significantly cheaper than standard variable rates despite ongoing volatility in wholesale energy markets.
Substantial Savings Compared to Price Cap
EDF's analysis reveals that FreePhase customers paid an average of 19.67p per kilowatt-hour during the first quarter of the year. This compares favorably to Ofgem's price cap rate of 27.69p per kilowatt-hour, representing a difference of nearly 30%. The dynamic tariff's structure allows it to avoid the risk premiums typically built into longer-term fixed products.
How the FreePhase Dynamic Tariff Works
The tariff operates with a straightforward three-band pricing system announced one day in advance. Customers receive notifications about the next day's rates across three time periods: green (super off-peak from 11pm to 6am), amber (off-peak from 6am to 4pm and 7pm to 11pm), and red (peak hours from 4pm to 7pm).
While customers can maximize savings by shifting energy-intensive activities like laundry, cooking, and device charging to cheaper periods, the analysis shows that savings occur even without behavioral changes. The tariff offers average off-peak rates that are 28% cheaper than standard variable tariffs, with night rates being 40% more affordable on average.
Price Protection and Additional Benefits
EDF has included a 12-month maximum-price guarantee in the FreePhase Dynamic offering, ensuring that unit rates will never exceed 75p per kilowatt-hour regardless of wholesale price increases. Customers can track upcoming prices through EDF's dedicated price tracker and benefit from regular periods of free electricity.
Joe Souto, Director of Retail at EDF, commented on the tariff's performance: "FreePhase demonstrates that households can access cheaper electricity prices even during market volatility. Customers automatically benefit from lower day-ahead electricity prices without any effort, and those who shift their usage away from peak hours achieve even greater savings."
Souto highlighted that FreePhase customers have collectively saved £54,000 compared to the price cap already this year, with customers receiving 37 hours of free electricity in just one week recently. "Unlike some time-of-use products requiring constant price monitoring, FreePhase keeps things simple with just three daily prices, allowing customers to plan confidently and maintain control over their energy costs," he added.
The dynamic tariff represents an innovative approach to energy pricing that rewards flexibility while providing substantial cost savings for consumers navigating challenging economic conditions.
