EDF Energy has announced it will offer a two-year, fixed priced tariff to its pre-pay customers in the coming months.
Fixed rate plans allow customers to lock in the unit rate cost of their gas and/or electricity, effectively protecting them against price rises for one, two or even three years.
Pre-payment meters are often installed in households that have gone into debt with their energy supplier. A “pay-as-you-go” meter allows customers to pay off their debt while continuing to pay toward current energy use.
However, because the special meter requires a pre-payment plan, customers are often blocked out of best deals on the market because they are limited only to other pre-payment plans.
An SSE price freeze and British Gas price rumours
The news comes as SSE has pledged to freeze prices for its customers until 2016.
The big six supplier expects profits to fall as a result, and at the same time as the price news, announced it would also be eliminating 500 jobs and pulling out of development of three windfarms.
This was a welcome change after SSE became the last of the big six to implement the government-led green levies cut, meaning their customers were the last to benefit from reduced bills.
Meanwhile, rumours of a British Gas price freeze surfaced recently when global bank Credit Suisse announced it was lowering its projected estimates for British Gas parent company Centrica due to SSE’s move.