The new fixed rate energy tariff almost £350 lower than Ofgem price cap

A newly released energy tariff could save billpayers a significant amount of cash.

It comes as energy bills across the UK are set to fall by 12 per cent from the start of April when the new energy price cap of £1,690 comes into effect. However, EDF Energy's new tariff promises to land at £347 cheaper than the current price cap, which is £1,928.

The firm's 12-month fixed rate deal will stay at £1,581 annually and will be made available to both existing and new EDF customers. It means a new hat has been thrown in the ring when it comes to the variable or fixed debate for energy bills. At £1,581 for the average household, this should be worth considering for those wanting to take advantage of falling rates and lock in price certainty for 12 months.

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Will Owen, energy expert at Uswitch.com said: "Customers have been under the cosh from sky-high prices for years, so it’s a big step to see tariffs priced lower than the upcoming cap, and the cheapest we’ve seen since late 2021.

"If you decide to stay put on a standard variable tariff, it’s worth noting you will see your energy costs change every three months in line with the price cap. We don't expect this deal to be available for long, and EDF reserves the right to remove the deal at any time.

"We’re hopeful this will encourage more suppliers to price competitively to finally give customers choice – and financial relief – on their energy bills."

When it comes to deliberating over your energy bills, there's a wide variety of factors to consider. Firstly, it's important to highlight that both the energy price cap and EDF's new tariff does not set a hard limit on how much your energy bill