Ofgem under fire over ban on cut-price energy deals

ENERGY regulator Ofgem was accused of stifling competition in the household gas and electricity market today when it ruled out a return of cheap exclusive deals for customers switching to new suppliers until after the winter.

- Jonathan Prynn

The regulator said it would not lift a ban on so called “acquisition-only tariffs” that came into force in April 2022 at the height of the energy crisis to help restore stability to the market.

Ofgem said that following a consultation it had decided the ban must stay in place until the end of March next year after an autumn and winter when bills are expected to start going up again.

It said that lifting to ban would risk “returning to an unfair market for inactive switchers — often referred to as the “loyalty penalty” — and damaging consumer trust.”

Before the ban came in, suppliers would routinely offer exclusive deals to new switchers in a bid to claw market share away from rivals.