Calls grow for permanent ban on acquisition-only tariffs

By Staff
3 Min Read

Ofgem’s recent proposal to permit energy suppliers to offer exclusive tariffs to new customers, excluding existing customers, has been met with widespread opposition.

Polling commissioned by So Energy reveals that 87% of the public and over 70% of MPs are against this plan.

The proposal involves lifting the current ban on acquisition-only tariffs, which prevents suppliers from offering cheaper deals solely to new customers through price comparison websites.

This change is set to take effect in October, potentially allowing suppliers to hide their best deals from existing customers.

So Energy’s independent research indicates that introducing acquisition-only tariffs could lead to unfair competition, with loyal customers potentially facing annual bill increases of up to £64 to cover the cost of suppliers’ cheaper deals on price comparison websites.

So Energy is urging Ofgem to make the ban on acquisition-only tariffs permanent.

Senior MPs and Citizens Advice back this call and would align with the Financial Conduct Authority’s 2022 ruling that home and motor insurance providers must offer renewing customers the same prices as new customers.

Chief Executive Officer and Co-Founder of So Energy Simon Oscroft said: “It’s a scandal that suppliers may soon be able to hide their best deals from their loyal and often vulnerable customers.

“It will destroy trust by embedding discriminatory pricing practices into the market, just as fixed deals are beginning to reappear in the market.

“Ofgem’s justification for their proposal makes no sense. We know MPs, customers, suppliers, and consumer groups don’t want this.

“Unsurprisingly, the only group supporting Ofgem are price comparison websites who will make a fortune from incentivising an unsustainable race to the bottom on price.”

Energy Live News has contacted Ofgem for comment.

Copyright © 2024 Energy Live News LtdELN

Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *