Ofgem extend the ban on acquisition-only tariffs (BAT) until 31 March 2025 Ofgem retains ban on acquisition-only tariffs On 23 February 2024 Ofgem published a decision to extend the ban on acquisition-only tariffs (BAT) until 31 March 2025. Alongside that decision, we...

[UK Sentinel]

Ofgem retains ban on acquisition-only tariffs

On 23 February 2024 Ofgem published a decision to extend the ban on acquisition-only tariffs (BAT) until 31 March 2025. Alongside that decision, we confirmed that we would issue a statutory consultation on whether to remove the BAT following 6 months of this extension.

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.

Read more:

https://www.ofgem.gov.uk/press-release/ofgem-retains-ban-acquisition-only-tariffs

 

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