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Consumer Scotland publishes response to Ofgem consultation on acquisition-only tariffs ban

Consumer Scotland has published its response to Ofgem's statutory consultation on the future of the ban on acquisition-only energy tariffs, dated 8 July 2024.

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Consumer Scotland published its response to Ofgem's Statutory Consultation on the Future of the Ban on Acquisition-only Tariffs on 8 July 20241. The document is available in both PDF and HTML formats1.

The publication is a response to a consultation by Ofgem, the energy regulator for Great Britain, on the future of the ban on acquisition-only tariffs1. Acquisition-only tariffs are deals offered to new customers but not to a supplier's existing customers. Consumer Scotland is one of the energy consumer bodies that represent household interests in the energy market1.

"Consumer Scotland response to Ofgem's Statutory Consultation on the Future of the Ban on Acquisition-only Tariffs."
Consumer Scotland, source1

The document was first published on 8 July 2024 and last updated the same day1. The PDF version is 159.8KB1. The response file is dated June 2024 in its file name1.

The sources do not state what position Consumer Scotland takes in the response, nor what arguments it makes for or against retaining the ban. Ofgem's own consultation document, its closing date and any decision timetable are not reported in the material published by Consumer Scotland1. The outcome of the consultation has not been reported.

Why it matters for households

Acquisition-only tariffs sit at the centre of how suppliers compete for household custom. When such deals are permitted, a supplier can reserve its cheapest rates for customers who switch to it, while customers who stay put pay a different price. When the ban applies, suppliers must generally make the same tariff available to new and existing customers alike.

For a household, the practical effect runs in two directions. Lifting the ban could mean sharper introductory prices for those who shop around, but it can also widen the gap between the best advertised rate and what loyal customers pay. Keeping the ban tends to limit that gap, at the cost of fewer headline deals aimed at switchers.

Either way, the decision shapes what a household can secure on its own terms, which is the core of energy independence at home: the ability to choose a tariff on its merits rather than being held in place by the terms attached to a supplier's existing-customer book. For households in Scotland, where tariffs in Scotland are set within the same Great Britain-wide retail market, the consultation outcome applies on the same basis as elsewhere in Britain1.

What happens next

No next steps are reported in the published response. Ofgem's decision on whether to retain, modify or lift the ban, and any date for it, has not been reported1.

Sources1 cited
  1. Ofgem's Statutory Consultation on the Future of the Ban on Acquisition-only Tariffs | Consumer Scotland, consumer.scot