Energy crisis now pauses the government plan for auto-switching

The move aims to stabilise the energy retail market in the short-term

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The government has announced it will pause its plans for opt-in and testing opt-out energy switching.

The public consultation on the plan which ran from 23rd July aimed to gather views on proposals that would see an opt-in switching scheme, where households on the most expensive tariffs would be offered a simple method of switching to a cheaper tariff.

The plan would also introduce testing opt-out switching, where, unless they choose not to be, consumers who haven’t switched for a while are switched to a competitive new contract.

The Business and Energy Secretary said the government intends to refresh its energy retail market strategy that will be published soon.

Kwasi Kwarteng said: “To enable this refresh of our overall retail market strategy and to help stabilise the market in the short-term, the government is therefore pausing policy development on the recent public consultation on opt-in and testing opt-out switching.”

A few days ago, Ofgem announced a package of reform measures aiming to make the sector stronger over future energy price shocks.

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