EDF has launched a new fixed energy tariff that directly matches the upcoming Ofgem price cap set to take effect on April 1, 2026. This move positions EDF as offering the cheapest energy-only fixed price among major suppliers in the market.
Details of the New Tariff
The product, named Simply Fixed 2Yr Mar28v3, is a two-year fixed-term energy tariff. It is priced at £1,772 initially but will decrease to £1,641 from April 1, aligning with policy cost changes on bills. This reduction mirrors Ofgem's new Energy Price Cap, announced at the end of February, which has been established at £1,641 per year for a typical household from April 1 to June 30, 2026.
Market Context and Predictions
The launch comes amid significant volatility in the energy market. UK wholesale gas costs have surged by 75 percent over the past week, contributing to short-term uncertainty that is impacting future energy costs. Price predictions indicate that sustained high wholesale energy costs could lead to a 10 percent increase in the energy price cap by July 2026.
EDF's own forecast on Monday, March 2, showed the Q3 price cap had already increased by £71 before wholesale costs rose further on Tuesday. The new tariff is below current forecasts for where the price cap is expected to be later this year, offering consumers a potential safeguard against rising prices.
Availability and Conditions
The tariff is available to both new and existing customers who sign up directly through EDF. However, due to the volatility of wholesale market prices, the deal may be withdrawn at any time. Customers should be aware that exit fees of £75 per fuel will apply if they choose to leave the tariff early.
Executive Commentary
Philippe Commaret, Managing Director of Customers at EDF, commented on the launch. "Global wholesale energy prices are incredibly volatile right now and many suppliers have responded by withdrawing fixed tariffs," he said. "We're determined to help our customers where we can and by launching this fixed tariff today, households can lock in a price now, giving them peace of mind and certainty of their energy prices for two years."
This initiative by EDF aims to provide consumers with stability and predictability in their energy bills during a period of economic uncertainty and fluctuating energy markets.
