Power suppliers have responded to Ofgem’s choice to increase the ban on acquisition tariffs.
Rachel Fletcher, Director of Economics and Regulation at Octopus Power, helps the extension however urges for a everlasting ban to encourage real competitors and innovation.
Ms Flecher stated: “It’s good to see Ofgem prolong the ban on teaser tariffs, but it surely wants to finish them as soon as and for all.
“A everlasting ban would power suppliers to compete by innovating and driving decrease prices – fairly than lazily counting on “tease and squeeze” ways, designed to lure clients in on momentary bargain offers.
“A everlasting ban on rip-off tariffs will forestall a return to the wild west power market – which bamboozled clients and value them billions in bailing out failed suppliers.”
Commenting on the choice on acquisition-only tariffs, Simon Oscroft, So Power Interim-Chief Govt Officer and Co-Founder, stated: “Right now’s Ofgem choice is one other kick within the enamel for power clients after a bruising few years.
“When the BAT is eliminated, suppliers can be free to cover their finest offers from their loyal clients. Why shouldn’t they’ve entry to the very best offers?
“Loyal clients mustn’t need to name their provider on renewal and haggle for a deal that they will see the provider is providing elsewhere. It’s unfair for patrons, and so it’s no shock that this transfer is vastly unpopular.
“Our current survey of power clients discovered that 9 in ten need current power clients to entry the identical tariffs as new clients.”
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