Ofgem has announced its intention to extend the Ban on Acquisition-Only Tariffs (BAT) but is planning its removal within the next year due to doubts about its effectiveness and potential costs to consumers.
Introduced as a temporary measure in April 2022 to stabilise the energy market amidst high and volatile gas prices, the BAT was intended to protect consumers.
However, Ofgem now believes that the BAT may not offer significant benefits and could result in net consumer costs.
While a consultation showed support for the extension from energy suppliers, consumer groups, and some stakeholders others opposed it, citing concerns about increased prices and limited benefits.
Despite the extension, Ofgem plans a phased approach to remove the BAT, considering market stability reasons and uncertainties arising from its removal.
The decision to extend the BAT until March 2025 allows for further analysis of its impact, especially after the Market Stabilisation Charge is removed.
Make sure you check out the latest Net Hero Podcast episode:
Net zero is a way to cut your costs and help the planet, so what’s stopping you? Often, it’s just the right help and advice. That’s what we will provide at the Big Zero Show this July. Workshops, expert speakers, case studies and exhibitions. Plus, networking with 1500 peers and potential customers. Register for free now.
