EDF Energy has launched a two-year fixed-price energy plan that comes without an exit penalty, so customers can move on should the cost of energy tumble.
The provider is wooing customers disillusioned after last year saw energy companies across the board hike prices. At the same time, recent statistics from Safestyle Windows showing energy and water bills have increased by 79% over the past five years.
EDF's Blue + Price Promise February 2015 costs £1,192 a year to an average user - that's £10 more a year than its current fixed-price plan, which offers price protection until the end of June 2014. In essence, £10 more will protect your energy bill for an extra eight months.
According to price comparison site uSwitch, the only fixed-price plan on the market cheaper is Ovo's New Energy Fixed at £1,172 a year. However, it only guarantees prices for 12 months from the beginning of the plan and carries a £60 early-exit penalty.
The new EDF Energy plan 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 for the average user, SSE's plan is £46 a year cheaper than EDF Energy's new Blue + Price Promise plan.
Tom Lyon, energy expert at uSwitch, said: "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.
"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."