Which is right for your organisation?
EDF Energy offers two different types of “fixed” contracts: the EDF Peace of Mind contract and the EDF Fixed and Standard contract. Here are the key differences between these two contract types:
Price structure:
- EDF Peace of Mind contract: This contract provides customers with a fixed energy price for a specific period, usually one to three years. The fixed price ensures that the unit rate for energy consumption remains the same throughout the contract duration, regardless of any changes in the energy market or wholesale prices.
- EDF Fixed and Standard contract: With this contract, customers also receive a fixed energy price for a specific period. However, in addition to the fixed price, this contract may include variable charges, such as standing charges or other non-commodity charges. These charges may be subject to change during the contract term.
Budget certainty:
- EDF Peace of Mind contract: This contract type offers customers peace of mind by providing budget certainty. The fixed price ensures that customers know their energy costs in advance, allowing for easier budgeting and protection against unexpected price increases.
- EDF Fixed and Standard contract: While the energy price is fixed, the inclusion of variable charges means that customers may have some variability in their overall energy costs. Non-commodity charges, which are not fixed, can vary over time, potentially impacting the total energy bill.
Contract duration:
- EDF Peace of Mind contract: This type of contract typically spans a fixed period of one to three years. The contract terms and duration are agreed upon between the customer and EDF Energy. During this period, the fixed energy price remains constant, providing stability and predictability in energy costs.
- EDF Fixed and Standard contract: Similar to the Peace of Mind contract, the Fixed and Standard contract also has a fixed price for a specific period. The contract duration can vary, and customers can select the term that best suits their needs. However, the inclusion of variable charges means that the overall energy cost may vary during the contract term.
Customer requirements:
- EDF Peace of Mind contract: This contract type is suitable for customers who prioritize budget certainty and want protection against market price fluctuations. It offers a fixed price for energy consumption, providing stability and predictability in energy costs. It is ideal for customers who prefer a straightforward and fixed approach to their energy bills.
- EDF Fixed and Standard contract: Customers who choose this contract may be comfortable with some variability in their overall energy costs due to potential changes in non-commodity charges. It is suitable for customers who value the fixed price aspect but also want the flexibility to adapt to possible changes in other charges during the contract term.
In short, there is a minor price premium (circa 1.4p/kWh at present time), for the EDF Peace of Mind and this guarantees the customer greater budget certainty.
It’s important to note that the specific terms, conditions, and pricing details of these contracts may vary depending on the individual offerings and availability at the time of contract selection. Customers should consult the contract and T&C for a full breakdown of charges. Contact Direct Power today for more information on these contract options!
