Major energy firm cuts standing charges with new tracker tariff - could it help you slash bills?
EDF has reduced the fixed rate that customers pay every month, claiming that its new variable tariff could save customers up to £100.
The energy provider has updated its Simply Tracker Extra, cancelling the original arrangement, which was due to terminate on 26 April, to a revised plan that will now cease at the end of April 2026 instead.
The tariff is a variable price tracker that aims to undercut the price cap by up to £50 per fuel by applying a discount to the standing charges.
The decision to reduce fixed daily charges, found on customer bills alongside unit rates, guarantees that every household receives an equal share of predictable cost reductions.
Standing charges are applied by energy companies on a daily basis, regardless of your actual energy consumption for the day.
At present, standing charges are levied at 31.65p for gas and 60.97p, but the actual rates you are charged will depend on your location, your payment method for the bill, and the type of electricity meter you use.
The accusations of unfair charges have gained more attention since energy prices have increased, with campaigners claiming it disadvantages people who have reduced their usage but are still being hit with fixed fees.
EDF claims that its new tariff will yield the same financial advantages for those taking it out, regardless of whether they are high or low energy users or whether they have a Pay As You Go meter.
Rich Hughes, the director of retail at EDF, commented: 'Our new tracker tariff provides customers with the confidence that their energy bills will be at least £100 lower than the price cap, whatever the fluctuations in energy prices over the next 12 months.'
'The tariff also reduces standing charges, ensuring every customer gets the same predictable cost benefits. It rewards people who are already doing their bit to lower their carbon footprint and improve their energy efficiency.'
EDF state that, taking into account the January price cap, their tariff will result in an average yearly bill of £1,638 for a dual-fuel consumer who pays via direct debit, with exit charges of £25 per fuel type.
It is the least expensive tracker tariff available right now, followed by Scottish Power's 'Help Beat Cancer Flexi Jun 2026' tariff, which has a saving of £65 compared to the current January price cap.
Residential customers can choose a fixed-rate energy plan to reduce their energy bills.
Outfox the Market's 12-month fixed dual tariff provides an average bill of £1,628 annually, a saving of £110 off the current price cap.
According to Will Owen, an energy specialist at Uswitch, "It's quite rare for deals like these to be offered at such competitive prices. We think households may only have a limited time to snap up one before they're gone."
'EDF's Simply Tracker Extra tariff offers a unique opportunity to lock in a saving of £100 against the price cap over 12 months, regardless of whether the price increases or decreases.'
'This offer is also an excellent option for smaller homes as the discount is on standing charges, so if you utilise less energy, you'll save a significantly greater amount.'
Could other suppliers offer more competitive fixed rates?
The introduction of fixed prices aims to make energy tariffs more straightforward and allow individuals to more easily compare various offers across the market.
A flat rate allowed each household to make an equal contribution towards the cost of receiving gas and electricity at their home and also to other related expenses, such as the maintenance of the National Grid.
They had accounted for a relatively small portion of energy bills, but their costs rose substantially at a time when consumers were already making a concerted effort to reduce their energy consumption.
Ofgem launched a review into the contentious charge last year and when it asked suppliers whether they could offer zero or low standing charges, their response was that it was 'commercially unviable'.
However, the regulatory body has since agreed that from next winter, energy providers will be required to offer customers tariffs with no standing charges.
EDF's move to reduce standing charges will probably not be the only one - many other deals are also expected to offer significantly lower standing charges.
However, the trade-off with these deals is that the unit rates are typically more expensive, which could be beneficial for lower-consumption households, but result in higher bills for those who use a lot of energy, such as the elderly and the disabled.
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