Public overwhelmingly supports permanent ban on acquisition only tariffs

More than 90% of the public believes the ban on acquisition only tariffs (BAT) should be made permanent.

A survey of 1,000 consumers carried out by Monkey See asked “when thinking about what tariffs energy suppliers offer their customers, do you think that existing customers should have access to the same tariffs as new customers?”.

Of the 939 who responded yes or no, 93.3% were in favour.

It comes as Ofgem is just weeks away from publishing its decision on whether to lift or make permanent the ban, introduced as a temporary measure in 2022, which prevents suppliers offering cheaper deals for new customers.

The BAT was introduced alongside the Market Stabilisation Charge (MSC) to ensure fair competition as wholesale energy prices began to soar.

Last year the regulator confirmed that the MSC, which has been extended several times in the past, will finally come to an end in March 2024.

However, Ofgem has said that it is open to extending the BAT as a “standalone measure, while the price cap remains in place”.

Responding to the data, So Energy CEO Simon Oscroft urged Ofgem not to scrap the ban warning consumers should not have to haggle for better deals.

So Energy believes the ban should be made permanent so as loyal customers are not unfairly penalised, a move which will mirror a decision made by the Financial Conduct Authority in the home and motor insurance sector.

Oscroft said: “Bill payers should be able to access their suppliers’ best available deals without having to call them on renewal and haggle. This erodes confidence in suppliers and penalises loyal customers at a time when households are still reeling from sky high energy bills.

“Worryingly, just as fixed tariffs have returned to the market, Ofgem is considering removing the rule that stops suppliers from hiding their best deals from their loyal customers. Customers emphatically don’t want this as evidenced by this new survey, so we urge Ofgem to make the ban on price walking permanent.”

A spokesperson for Ofgem said: “It is positive to see switching on the rise, and we want customers to have access to fair energy deals. The consultation has now closed and we’ve seen responses from a range of market players and interested parties, setting out arguments in both directions on this issue. These are being considered carefully and we will respond in due course.”