Britain’s energy regulator has said it will extend some temporary protection measures it launched last year to tackle skyrocketing electricity and gas prices and market volatility.
The ‘Market Stabilisation Charge’ (MSC) was introduced in April 2022 – it aims at managing the impact of suppliers’ exits on market stability.
The charge, which is paid by suppliers gaining new customers to suppliers losing them, takes effect if wholesale prices fall significantly below the level used to set the price cap.
Ofgem said the MSC and the ban on acquisition-only tariffs would be extended beyond 31st March 2023.
The ban on this type of tariff would effectively mean that suppliers will not be allowed to lure in new customers by offering them exclusive cheaper tariffs.