EDF Energy customers are about to come back to earth with a bump as the popular fixed rate energy plan Fixed S@ver 2 comes to an end on the 31st of September.
The plan, which was launched in April 2011, proved hugely popular. Although EDF Energy’s Fixed S@ver 2 customers paid a £114 premium to fix their prices, uSwitch estimates they have saved up to £297 since signing up.
But, they are about to come back to earth with a bump: from 30th September, they will roll on to EDF Energy’s standard plan with an average annual bill size of £1,129, £120 a year more expensive.
– The average annual household energy bill is now £1,258, £249 more than the average cost of EDF Energy Fixed S@ver 2 at £1,009
– Since Fixed S@ver 2 launched last April, customers have saved £297 or 18% in total compared with those on the average standard plan
– When it launched, Fixed S@ver 2 customers were paying £114 a year more than those on the cheapest online plan in the market – now they are paying £31 less than those on the cheapest plan
– Fixed S@ver 2 customers have been sheltered from the latest round of price rises, which increased the average bill by £161 or 14%
What next for EDF customers?
The news was accompanied by EDF Energy launching its Blue +Price Promise April 2014, which fixes prices for the next two winters – but with the freedom to leave at anytime without paying an exit fee. The cheapest plan on the market, at £1,040 a year, comes courtesy of First Utility’s iSave Fixed V3 plan, fixed until 31st December 2013.
Commenting on the news, Tom Lyon, energy expert at uSwitch said: “After a round of price rises at the start of last year, some wary consumers rushed to fix. Although there was initially a premium for this peace of mind, this soon disappeared when another round of price hikes struck at the end of the year.
“By signing up to EDF Energy’s plan, consumers were protected from these rises and have been able to enjoy substantial savings on their bills ever since.
“However, those who have enjoyed protection from price rises may be in for a bill shock when the plan comes to an end in 6 weeks. Customers will be automatically rolled on to EDF Energy’s standard plan – which will cause their annual bills to shoot up by £120.
“The good news is that, although these customers won’t be able to enjoy equally low bills, they can cushion the blow by moving to one of the cheaper plans on the market. And with the cheapest plan on the market also a fixed price plan, customers can enjoy further protection until 2014.”
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