Uswitch comments on Ofgem’s decision to retain the Ban on Acquisition-only Tariffs
Richard Neudegg, director of regulation at Uswitch.com, said: “The decision to continue with the Ban on Acquisition-only Tariffs (BAT) is a hammer blow to households seeking cheaper energy bills, especially as a difficult winter approaches.
“The ban was introduced as a temporary measure to help stabilise the market during the energy crisis and to protect suppliers, but it has done nothing for consumers other than artificially raise prices.
“Ofgem’s own analysis concludes that retaining the BAT is ‘likely to result in net costs to consumers through increased prices’. It is disappointing to see an economic regulator go against the evidence, especially on choices that could bring down household bills.
“Now the market is in a more stable position, the ban is reducing the chance of suppliers from offering discounted prices and cheaper deals to both new and existing customers, at a time when they are desperately needed.
“Lifting the ban would increase the pressure for suppliers to reward their existing users with better value deals, because if they don’t, another supplier could offer them something better. In fact, they’ll have a stronger reason to offer their own customers better deals, as they will be less likely to move. The argument that ‘only new customers will see good deals’ doesn’t hold water when the alternative is ‘no one sees good deals’.
“This is a missed opportunity for Ofgem to remove the protective bubble around suppliers and to support consumers, who are already facing the prospect of higher bills this winter. Now was the time for action, not more deliberation.”
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.