London, 02 August, 2024, / (Oilandgaspress)/ –Rules preventing energy suppliers from offering lower prices exclusively to new customers will remain in place to ensure all households can access the best available deals.
The regulator has decided to keep the ban on acquisition-only tariffs (BAT) – which ensures all customers have access to the best deals – after hearing the views of concerned consumer groups and the majority of suppliers demanding fairer treatment for existing customers.
During a statutory consultation in May, campaigners warned that proposals to remove the ban risked returning to an unfair market for inactive switchers – often referred to as the ‘loyalty penalty’ – and damaging consumer trust.
They added that the ban also ensures that millions of customers in debt, who may not be able to switch to a new firm for months or even years, are able to access a better deal with their current supplier.
Having considered the views of all respondents, Ofgem has decided to keep the BAT in place at least until its current expiration date of 31 March 2025.
Charlotte Friel, interim director for consumer protection and retail markets, said:
“We have heard the voices of consumers loud and clear – and we have responded.
“We are committed to acting in the best interest of all customers and the feedback we get from the public, industry, consumer groups and charities is vital in shaping the work we do. The responses we received showed a strong strength of feeling against short-term cut-price tariffs that shut out a supplier’s existing customers.
“Whilst competition is an important part in driving better standards, so too is consumer trust – and it is clear that denying the best deals to all risks undermining the progress we have made to restore confidence in the energy market.
“Customers have the right to vote with their feet and switch suppliers for better service, or more support, but retaining the BAT will mean that they don’t have to keep moving to chase the best rate.”
Information Source: Read More
Energy Monitors | Electric Power | Natural Gas | Oil | Climate | Renewable | Wind | Transition | LPG | Solar | Electric | Biomass | Sustainability | Oil Price |
