Energy regulator Ofgem has announced that it has begun a consultation about ending the ban of acquisition-only tariffs, something that critics claim has stifled competition in the energy market.
Acquisition-only tariffs are deals that are only offered to new customers with the aim of attracting them with competitive prices. In response to energy crisis, Ofgem imposed a short-term ban on them that is scheduled to expire in March 2025. With the energy markets now having largely stabilised, the ban could now be lifted early in October.
MoneySavingExpert.com founder Martin Lewis explained that energy retailers are expected to compete for customers on price in the UK energy market, but this now rarely happens, adding:
“Most firms are currently happy to sit on their existing customers and profit – where once you could switch and save 30%, now it’s a few percent at most. So, in reality, the Energy Price Cap, set up as a remedial backstop rate, is now pretty much the price.”
Uswitch’s director of regulation, Richard Neudegg, agreed that removing the ban would be good news, because it had led to suppliers essentially giving up on offering competitive deals. With Ofgem’s decision due in July, he said it could open the way for cheap fixed deals to be available by winter.
In the meantime, a good way to save money on energy bills is to have thermostatic radiator valves fitted, so you heat your home in a smarter way. Xgas can send heating engineers to Wrexham and area, including Chester and Ellesmere Port. Get in touch to learn more.
