Future of the Ban on Acquisition-only Tariffs after March 2025
Summary
Ofgem consultation on the future of the Ban on Acquisition-only Tariffs (BAT) after March 2025. The BAT prevents suppliers from offering lower tariffs to new customers than to existing customers.
Why it matters
Decision point on whether to extend, modify or end the BAT. The Ban removes the supplier strategy of acquiring-customer discounts subsidised by loyal-customer markups. Renewing the Ban locks in the constraint; ending it restores acquisition pricing competition.
Areas affected
Memo
Future of the Ban on Acquisition-only Tariffs after March 2025 | 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 the Ban on Acquisition-only Tariffs after March 2025 Publication type: Decision Publication date: 14 November 2024 Decision for: Future of the Ban on Acquisition-only Tariffs (BAT) after March 2025 Print this page Related links Decision: future of the ban on acquisition-only tariffs Share the page Share on Facebook Share on Twitter Share on LinkedIn The Ban on Acquisition-only Tariffs (BAT) prevents suppliers from offering fixed-term deals exclusively to new customers, ensuring that any discounted deals are also available to existing customers. In October 2024, we consulted on the merits of extending the BAT until 31 March 2026. This followed a previous consultation that took place in May and June 2024 that signalled our intention to extend the BAT for 12 months beyond 31 March 2025. We also invited stakeholder views on the merits of extending the BAT’s associated Market-wide Derogation for the same time period. Separately, we sought views on how well the BAT functions at present and whether there are any reforms to its operation which could enable it to operate more effectively in future. Our decision We have considered all the responses and have made the decision to retain the BAT until at least 31 March 2026, together with the Market-wide Derogation. Feedback received on the merits of exploring possible reforms to the BAT will be taken into consideration in our ongoing work on the future of price protection, in which an enduring BAT is one potential option. Main document Future of the ban on acquisition-only tariffs after March 2025 - decision [PDF, 178.11KB] Print this page Related links Decision: future of the ban on acquisition-only tariffs Share the page Share on Facebook Share on Twitter Share on LinkedIn Close