Energy suppliers have responded to Ofgem’s decision to extend the ban on acquisition tariffs.
Rachel Fletcher, Director of Economics and Regulation at Octopus Energy, supports the extension but urges for a permanent ban to encourage genuine competition and innovation.
Ms Flecher said: “It’s good to see Ofgem extend the ban on teaser tariffs, but it needs to end them once and for all.
“A permanent ban would force suppliers to compete by innovating and driving lower costs – rather than lazily relying on “tease and squeeze” tactics, designed to lure customers in on temporary cut price deals.
“A permanent ban on rip-off tariffs will prevent a return to the wild west energy market – which bamboozled customers and cost them billions in bailing out failed suppliers.”
Commenting on the decision on acquisition-only tariffs, Simon Oscroft, So Energy Interim-Chief Executive Officer and Co-Founder, said: “Today’s Ofgem decision is another kick in the teeth for energy customers after a bruising few years.
“When the BAT is removed, suppliers will be free to hide their best deals from their loyal customers. Why shouldn’t they have access to the best deals?
“Loyal customers should not have to call their supplier on renewal and haggle for a deal that they can see the supplier is offering elsewhere. It’s unfair for customers, and so it’s no surprise that this move is hugely unpopular.
“Our recent survey of energy customers found that nine in ten want existing energy customers to access the same tariffs as new customers.”
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