Martin Lewis: Plans to end ban on acquisition-only energy tariffs "better late than never"

This morning, energy regulator Ofgem has launched a consultation into ending the Ban on Acquisition-only energy tariffs, which prevents energy suppliers from offering tariffs exclusively to new customers. Martin Lewis believes this change is long overdue, and could help make the retail energy market function for consumers again.

Martin Lewis, founder and chair of MoneySavingExpert.com, said: "The energy market is broken. We need anything possible right now to stimulate competition and bring prices down. In March, I was staggered when Ofgem told me ‘there is evidence that removing the acquisition-only tariff ban would benefit consumers’, but didn’t remove it ‘in case it was moving too quickly.’ I disagreed and said we should throw the kitchen sink at getting people cheaper deals. So, this is better late than never.

"In normal times, I wouldn’t call for firms to be allowed to offer new customers cheaper prices than existing, yet these aren’t normal times. The current UK retail energy system was built on the premise that firms would fight each other for customers and compete on price – yet that’s hardly happening. Most firms are currently happy to sit on their existing customers and profit - where once you could switch and save 30%, now it’s a few percent at most. So, in reality the Energy Price Cap, set up as a remedial backstop rate, is now pretty much the Price."

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