Ofgem keeps ban in place to stop energy suppliers from offering cut-price deals to new customers

Energy regulator Ofgem has announced it will keep a ban in place that stops energy suppliers from offering cut-price deals to new customers until at least 31 March 2025.

The ban on acquisition-only tariffs (BAT) makes sure all households are offered the best possible deals on energy, not just new customers moving from supplier to supplier.

Ofgem’s extension of the ban until next spring is good news for loyal energy customers.

It also means that the millions of customers in debt to their energy provider who might have been prevented from switching to a new supplier to save money for months or even years, will now be able to get a better deal with their current provider.

Ofgem consulted with consumer groups and energy companies on the ban, including Which?, End Fuel Poverty Coalition, E.ON, Octopus Energy, So Energy, Rebel Energy and Citizens Advice, who all expressed worries that existing customers were not being treated fairly.

The industry regulator is still undecided on the long-term future of BAT, which is part of a bigger review into price protection for energy customers.

Charlotte Friel, of Ofgem, said: “Whilst competition is an important part in driving better standards, so too is consumer trust – and it is clear that denying the best deals to all risks undermining the progress we have made to restore confidence in the energy market. 

“Customers have the right to vote with their feet and switch suppliers for better service, or more support, but retaining the BAT will mean that they don’t have to keep moving to chase the best rate.” 

BAT was introduced as a temporary measure in April 2022 to provide consumers with more stability during the height of the energy crisis by getting rid of short-term discount tariffs designed to attract new energy customers from competitors.