EDF has launched a new trial that will give eligible customers a £150 reduction in their annual standing charges, offering a welcome boost to household finances. The energy giant is offering a discount of £6.25 per month per fuel, taken directly off the fixed daily fee that households pay for being connected to gas and electricity.
Additional savings through FreePhase tariffs
The discount comes on top of savings already available through EDF's FreePhase tariffs. The company claims that customers on the smart, time-of-use deal have saved an average of £152 in the first five months of this year alone, despite volatile wholesale prices. Crucially, there are no exit fees for those who decide the trial is not suitable.
Pressure on the energy industry
The initiative follows mounting pressure on the energy industry and regulator Ofgem to overhaul standing charges, which now account for more than £300 a year of the typical household bill before any energy is used. Campaigners have long warned that these charges unfairly penalise low-income and low-usage households, including pensioners and those in second homes who cannot reduce their bills further.
Martin Lewis, founder of Money Saving Expert, has been one of the most vocal critics. He previously revealed that complaints about standing charges outstrip those on any other aspect of energy bills and has campaigned for years for a low or even no standing charge option.
Ofgem pilot scheme
Ofgem confirmed earlier this year that EDF, along with British Gas, E.ON, and Octopus, would take part in a landmark pilot offering lower standing charge tariffs to eligible customers. The scheme is expected to benefit around 150,000 households nationwide. The regulator said the trial should reduce the standing charge portion of dual-fuel bills by at least £150, though unit rates are likely to rise to compensate.
Lewis has cautioned that such deals sit outside the energy price cap, warning that this could leave vulnerable customers who rarely shop around or switch supplier at a disadvantage.
EDF's commitment to reducing bills
Callum Morgan, Product Design Expert for Smart Tariffs at EDF, said the company was determined to keep finding ways to help customers cut their bills. "It is important that we and Ofgem continue to look at ways we can help all of our customers reduce their bills, so we are pleased to offer this trial tariff, focused on helping lower users save," he said. "Combining the trial with our FreePhase product gives customers a real opportunity to make more sizable savings which we hope will make a real difference."
How FreePhase works
Under FreePhase Dynamic, electricity is split into three price bands: a cut-price "green" overnight rate from 11pm to 6am, a mid-price "amber" band covering most of the day and evening, and a costlier "red" peak band from 4pm to 7pm. Prices are updated daily in line with wholesale costs, with tomorrow's rates published in advance so households can plan ahead—running appliances like washing machines, dishwashers, or electric car chargers when power is cheapest.
For those who prefer certainty, EDF also offers FreePhase Static, which uses the same three-band structure but locks in unit rates for a full year. EDF said off-peak "amber" rates under the static deal were up to 10 per cent cheaper, and overnight "green" rates up to 37 per cent cheaper, than the previous month's standard variable tariff.
How to sign up
New customers can sign up through EDF's existing FreePhase online process and register their interest in the trial, while existing FreePhase customers can also apply to take part. The launch is likely to pile pressure on rival suppliers to follow suit, as households continue to grapple with high bills and calls grow louder for a fundamental rethink of how standing charges are levied.
