Energy News

EDF launches new fixed price energy deal

Monday, 22 February 2010

By Daniel Barnes- daniel@consumerchoices.co.uk

EDF Energy is launching a new cheaper fixed rate energy deal, after warnings that customers coming off existing fixes could face a price hike.

EDF Energy is launching a new fixed rate energy tariff with gas and electricity prices fixed for 12 months.

The Annual Fix Version 2 offers fixed energy bills until March 2011 with a 6% discount for direct debit customers and a annual discount of £8.40 for dual fuel customers.

EDF Energy is lowering the price on last year’s fix for an average customer by £63.13 and the fix is cheaper than its standard tariff.

The firm claims the average saving against the British Gas standard tariff is £38.

Existing customers who signed up to the Annual Fix tariff last year will be renewed onto the new discounted rate from 1 April 2010 or are free to take an different deal from EDF.

The fixed deal is £101 a year more expensive for an average customer than EDF’s cheapest Online S@ver 5 tariff.

The new deal comes as warnings that customers coming off fixed rate deals in March could face price hikes of up to £258.

Fixed rate deals from E.ON, British Gas, Scottish Power and EDF Energy, some going back at 2006, are coming to an end with uSwitch.com warning average annual bills now stand at £1,232.

Chris Eagle, commercial manager at Energychoices.co.uk, said: “Energy price hikes and price cuts over recent years have left many customers confused about what their bills will be.

“If you are looking for prices to hold firm, then a fixed rate deal may be suitable for you. However, be aware while you may be insulating yourself from price rises, you won’t benefit from price falls.”

“It is also worth noting the EDF Energy deal has a £25 fee if you want to break out of the contract early.”