EDF launches first-of-its-kind three-rate tariff with free electricity hours

EDF has introduced FreePhase, a first-of-its-kind electricity tariff with three pricing rates that reflect daily wholesale energy changes. Free Phase gives customers more control over what they pay by shifting energy use away from peak times, with savings of up to £187 a year on their electricity bill compared to standard variable rates.

With three time-of-use rates – red (peak), amber (off-peak), and green (night) – customers can adapt their electricity usage to when it’s most affordable, actively taking the strain off the national grid at busy times and supporting the transition towards a more sustainable, electric Britain.

Customers will also be rewarded with periods of free electricity when wholesale market prices go negative, such as when there’s a surplus of renewable energy and when electricity demand is low. It is estimated that 192 hours of equivalent free electricity was available over the last year^[ii].

About FreePhase Dynamic and FreePhase Static

EDF is launching two versions of the tariff, FreePhase Dynamic and FreePhase Static, giving customers choice over which best suits their lifestyle and energy habits. 

For customers who want to track daily wholesale price changes, FreePhase Dynamic’s unit rates will go up and down in-line with wholesale electricity prices every day, with day-ahead prices published on EDF’s FreePhase Dynamic price tracker. 

FreePhase Dynamic offers off-peak rates up to 30% cheaper than the standard variable tariff, and night rates up to 44% cheaper^[iii]. The tariff comes with a 12-month maximum-price guarantee where the unit rate is capped, even if wholesale prices go higher^[iv]. 

For those who prefer more price certainty, FreePhase Static offers the same three-rate structure (red, amber, green), but with unit rates fixed for 12 months. On FreePhase Static, off-peak (amber) rates are around 16% cheaper, while night rates (green) are up to 35% cheaper compared to the standard variable tariff. 

Helping Customers Control their Energy Use

The introduction of these offers follows a trial of ‘FreePhase’ which has shown strong support from trial participants, with 71% of those surveyed making a conscious effort to shift their electricity usage, and 84% would recommend it to family and friends^[v]. 

“We’re excited to launch FreePhase, a dynamic tariff which makes it simple for customers to track the best and worst energy prices each day and plan their electricity usage, without having to analyse complex energy prices.” said Rich Hughes, Director of Retail at EDF. 

“For those who prefer more certainty or are new to time-of-use tariffs, there’s a static version with three fixed rates for the year, so customers can set and forget.  Customers are also rewarded with free electricity periods when prices go negative, saving them both cash and carbon.”

Both FreePhase tariffs require a smart meter that sends readings every 30 minutes, and customers are required to pay by Direct Debit^[vi]. There are no exit fees for leaving the tariff early.
 

Frequently asked questions:

How do customers sign up?

Customers can sign up to start saving and using energy smarter here: https://www.edfenergy.com/gas-and-electricity/freephase

What times do the rates change?

The FreePhase unit rate timings are:

• Red (peak rate, highest): 4pm to 7pm
• Amber (off-peak): 6am to 4pm; 7pm to 11pm
• Green (night rate, lowest): 11pm to 6am

When will customers get free electricity?

Customers will be rewarded with periods of free electricity on both of our FreePhase tariffs – for example, if prices on the wholesale market go 'negative'. This usually happens when there is an abundance of renewable electricity being generated – and electricity demand is low. We’ll send customers a text message a day before a free period is happening. 

With FreePhase Static, we'll credit customers for any electricity they’ve used during their free electricity periods, whilst Dynamic customers won't be charged for any electricity you use during the free electricity period. 

How is FreePhase different from other multiple rate tariffs?

FreePhase offers three-rates: red (peak), amber (off-peak), green (night). FreePhase Dynamic prices are updated daily to reflect the actual prices of electricity. Whilst the electricity market is priced into 48 half-hourly periods, FreePhase Dynamic takes the average for the red, amber and green periods – so customers only have to track three prices a day. FreePhase Dynamic is the only three-rate tariff in the market that tracks daily wholesale prices. 

In addition, both FreePhase tariffs will provide customers with free electricity when electricity prices go negative.