Ofgem’s statutory consultation on the future of the Ban on Acquisition-only Tariffs (BAT) - Which? response

The energy regulator Ofgem recently concluded a consultation on removing the ‘Ban on Acquisition-only Tariffs’ (BAT). The BAT was introduced in April 2022 and prevents energy suppliers from offering cheaper tariffs which are only available to new customers. The rule was initially brought in on a temporary basis during the energy crisis, and Ofgem now says it wants it to end in either October 2024 or March 2025.

Ofgem thinks that removing the BAT will be in the interests of consumers. But we don’t think there is sufficient evidence to support that. Any benefits to consumers who choose to switch will very likely come at the cost of higher prices for consumers who want to stick to their existing suppliers’ best deal, creating an unfair loyalty penalty. 

In our view, there are still strong grounds for an enduring BAT on the basis of reducing the loyalty penalty and in the interests of fairness. 

Ofgem should, at the very least, extend the BAT until March 2025. This would give time for a full analysis of potential impacts and a proper consultation with stakeholders on whether the BAT should be removed at all.