Acquisition-only tariffs are a way for energy suppliers to entice new customers to move suppliers by offering them cheaper prices. A ban was enforced in April 2022 to protect consumers during the energy crisis, which left more than 3million people without electricity.
In October 2024, Ofgem consulted on the merits of extending the BAT until March 31, 2026. This followed a previous consultation that took place in May and June 2024 that signalled its intention to extend the BAT for 12 months beyond March 31, 2025.
It also invited stakeholder views on the merits of extending the BAT’s associated Market-wide Derogation for the same time.
And separately, it sought views on how well the BAT functions at present and whether there are any reforms to its operation which could enable it to operate more effectively in future.
The regulator said on November 14: “We have considered all the responses and have made the decision to retain the BAT until at least 31 March 2026, together with the Market-wide Derogation.
“Feedback received on the merits of exploring possible reforms to the BAT will be taken into consideration in our ongoing work on the future of price protection, in which an enduring BAT is one potential option.”
The decision can be viewed at: https://www.ofgem.gov.uk/sites/default/files/2024-11/Decision_Future_of_the_Ban_on_Acquisition_only_Tariffs_after_March_2025.pdf