Future of Ban on Acquisition-only Tariffs post-March 2024 decision
Summary
Ofgem decision on the future of the ban on acquisition-only tariffs after March 2024. Determines whether suppliers can offer cheaper deals to attract new customers while charging existing customers more.
Why it matters
The ban was introduced to prevent loyalty penalties. Removing it could revive switching incentives but create a two-tier market where engaged consumers get better deals and disengaged ones subsidise them.
Areas affected
Related programmes
Memo
Future of Ban on Acquisition-only Tariffs post-March 2024 decision | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Future of Ban on Acquisition-only Tariffs post-March 2024 decision Publication type: Decision Publication date: 23 February 2024 Topic: Energy pricing rules Subtopic: Energy price cap Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn This decision sets out our intention to remove the Ban on Acquisition-only Tariffs from the market in a phased manner over the coming year, in order to provide clear notice of our direction and to stagger the removal of the BAT and the associated Market Stabilisation Charge, which will expire at the end of March 2024. We are therefore exercising our existing power to extend the BAT for a further year (with this letter representing our required written statement to do so) as well as the existing market-wide derogation from SLC22B for fixed retention tariffs. We will subsequently issue a statutory consultation, most likely with a minded-to position, on whether this extension should end after six months. Main document Future of Ban on Acquisition-only Tariffs post-March 2024 decision [PDF, 175.34KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close