EDF Energy promises to banish the winter blues with its new Blue + Price Promise plan
EDF Energy is helping consumers to banish the winter blues for the next two years with the launch of its new fixed price energy plan. Blue + Price Promise February 2015 will protect customers against price hikes for the next two winters and still comes without an exit penalty, giving consumers absolute flexibility to move on should energy prices suddenly tumble.
The new plan costs £1,192 a year on average. This is £10 a year more than EDF Energy’s current Blue + Price Promise Plan (June 2014), but the latter only offers price protection until the end of June 2014. This means that for £10 more those who take up the new plan will be protected from price hikes for eight months longer.
The only fixed price plan on the market that is cheaper is Ovo’s New Energy Fixed. At £1,172 a year it costs £20 a year less, however, it only guarantees prices for 12 months from the plan going live. It also carries a £60 early exit penalty.
The new EDF Energy plan even stacks up well against the cheapest variable plan on the market, SSE’s Discount Energy Bonus October 2014 (with paperless billing). At £1,146 a year, SSE’s plan is £46 a year cheaper than EDF Energy’s new Blue + Price Promise plan. However, with warnings of further price hikes on the way, SSE would only need to increase prices by 4% before those on the EDF Energy plan would actually be better off.
For those who are still sitting on old-fashioned standard tariffs, the decision to fix is a lot simpler. The average household energy bill for a cash or cheque customer is an eye-watering £1,353 a year – by changing to direct debit payments and signing up to a fixed price plan these customers could save up to £181 a year and enjoy at least one year’s protection against price hikes. Direct debit customers on standard tariffs are paying £1,265 a year on average – this means they could fix their energy prices for at least a year and still be saving up to £93 a year too.
Tom Lyon, energy expert at Uswitch.com, says: “Consumers have just struggled through a long, hard winter while enduring the impact of energy price hikes. With mounting uncertainty over where energy prices are heading, this new offer from EDF Energy could help many households to stave off future winter blues. It offers consumers a decent saving on current bills, but with the added peace of mind of knowing they are protected from price hikes until the end of February 2015. This means being sheltered for the best part of two winters, which could be a lifeline for those on a tight budget.
“Although it is £46 a year more expensive than the cheapest variable plan on the market, prices would only need to increase by 4% for this small premium to be wiped out. More importantly, Blue + Price Promise doesn’t carry an exit penalty which means that if prices don’t increase again or even tumble and fall, then customers would be free to move on again to a more competitive tariff.
“Importantly though, if you’ve never switched before and are sitting on one of the most expensive standard tariffs on the market then you could save £161 a year on average by signing up to this deal. Not only is this a solid saving, but it comes with the added bonus of a price freeze for the best part of two winters. With such competitive fixed price options around, it makes sense for households to start shopping around now.”
|
Type of plan
|
Plan Name
|
Price
|
Fixed or Variable
|
Average standard (cash and cheque)
|
N/A
|
£1,353
|
Variable
| |
Average standard (direct debit)
|
N/A
|
£1,265
|
Variable
| |
Cheapest Variable ‘best buy’
|
SSE’s Discount Energy Bonus October 2014 (with paperless billing)
|
£1,146
|
Variable
| |
Cheapest fixed price
|
Ovo’s New Energy Fixed
|
£1,172
|
Fixed for 12 months from going live
| |
Second cheapest fixed price
|
EDF Energy’s Blue + Price Promise February 2015
|
£1,192
|
Fixed until end of February 2015
| |
Longest fixed price
|
nPower’s Price Fix December 2015
|
£1,305
|
Fixed until end of December 2015
|
Source: Uswitch.com
Notes to editors
Bill size based on a medium user customer using 3,300 kWh of electricity and 16,500 kWh of gas paying by direct debit with bill sizes averaged across all regions.
Bill size based on a medium user customer using 3,300 kWh of electricity and 16,500 kWh of gas paying quarterly by cash or cheque with bill sizes averaged across the big six suppliers and all regions.
Difference of up to £181 is based on a standard cash and cheque customer (see point 2 above) moving to Ovo’s New Energy Fixed tariff. £1,353 a year minus £1,172 a year = £181.
Bill is based on a medium user customer using 3,300 kWh of electricity and 16,500 kWh of gas paying monthly by direct debit with bill sizes averaged across the big six suppliers and all regions.
Difference of £93 based on a standard direct debit customer (see point 4 above) moving to Ovo’s New Energy Fixed tariff (see point 3 above). £1,265 a year minus £1,172 = £93.
Based on a standard cash and cheque customer (see point 2 above) moving to EDF Energy’s Blue + Price Promise February 2015 tariff. £1,353 minus £1,192 = £161.
About us
It’s all about “U”!
Thank you for indulging us over the last 20 years by using a small ‘u’ and a big ‘S’ when writing about our brand in your articles.
We are delighted to let you know that you are now off the hook - it’s big U’s all the way (and small s’s) as we undertake our biggest ever rebrand - so let your autocorrect go wild!
About Uswitch
Uswitch is the UK’s top comparison website for home services switching. Launched in September 2000, we help consumers save money on their gas, electricity, broadband, mobile, TV, and financial services products and get more of what matters to them. Last year we saved consumers over £373 million on their energy bills alone.
Uswitch is part of RVU, a new business that also owns Money.co.uk and Bankrate.
If you would no longer like to receive our press releases please email prteam@uswitch.com with 'unsubscribe'.