MSE News: Energy suppliers to be forced to make all tariffs available to new and existing customers

MSE_Andrew

Energy suppliers will soon be forced to make all of their tariffs available to both new and existing customers as a result of new measures announced by the energy regulator Ofgem. The idea is to ensure consumers can switch to cheaper deals, and suppliers can handle the risks, if wholesale energy prices fall.

Read the full story here: 

'Energy suppliers to be forced to make all tariffs available to new and existing customers'

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Verdigris

This will radically change the "standard advice".

MWT

Also worth noting that there will be derogations available to allow suppliers to still offer 'loyalty' tariffs to existing customers which are cheaper than those offered to new customers. 

bristolleedsfan

"The main measure is forcing suppliers to offer all tariffs to new and existing customers, whereas currently suppliers can offer exclusive deals to tempt new customers to switch, or existing ones to re-contract."

PennineAcute

So we have the opposite for the insurance scam that went on for years.

I have no issues if companies offer cheaper renewal tariffs.  Beats the usual offer cheap tariffs to new customers (through comparison sites) and then stuff them at renewal.

I think OFGEM have betters thing they can be dealing with, such as stopping companies requesting unrealistic DDs, getting SOLR companies doing a better job (maybe they can have a public word with EDF whilst they do this) and getting EON Next to use my smart meter readings, instead of me having to give frequent reads (they can use my gas SM readings but not my electricity, and is one of the major selling points that companies like to use) are a few that come to mind.

bagand96

I assume by "all" they mean "all open" tariffs?  And not legacy tariffs that are closed to new sign ups?  Just sounds a little confusing given that providers have to list all of their tariffs on their websites for customers to reference, but the majority of them won't be "open" for sign ups.  

Hysteron

Would that include tariffs that are currently only available to owners of electric vehicles?

The quote from the Ofgem spokesperson in the article says that:
"All suppliers will have to offer existing customers the same deals available to new customers. This will ensure customers can benefit from all tariffs available in the market and enable more consumers to benefit when wholesale prices fall."

MWT

Hysteron said:

Would that include tariffs that are currently only available to owners of electric vehicles?

The quote from the Ofgem spokesperson in the article says that:
"All suppliers will have to offer existing customers the same deals available to new customers. This will ensure customers can benefit from all tariffs available in the market and enable more consumers to benefit when wholesale prices fall."

No, it wouldn't, they are still allowed to restrict access to both new and existing customers to that sort of tariff.

This change is seeking to prevent differentiation between new and old customers, not to prevent things like the EV only tariffs from existing.

These are the exceptions to the new rule:

a. A Closed Fixed Term Tariff;
b. A Collective Switching Tariff;
c. A Dead Tariff which complies with standard condition 22D; and
d. Tariffs only offered to a particular group of Domestic Customers defined on the basis of criteria specified by the licensee, provided that the criteria do not in any way relate to whether or not the Domestic Customer is a new or existing Domestic Customer.

MWT

bagand96 said:

I assume by "all" they mean "all open" tariffs?  And not legacy tariffs that are closed to new sign ups?  Just sounds a little confusing given that providers have to list all of their tariffs on their websites for customers to reference, but the majority of them won't be "open" for sign ups.  

That is correct, as per my post above, a 'Closed Fixed Term Tariff' is not affected by the new rule, it is still closed.

Hopefully this rule change will encourage suppliers to be more concise in stating which tariffs are really open and which are closed, yes BG, I'm looking at you... 

It isn't hard, Octopus and others make it very clear which are open and which are closed.

cing0

So what about companies such as Utilita who are not taking new customers and have a 'waitlist'  to switch?
Will they suddenly scrap it and be open for business in April?

MWT

cing0 said:

So what about companies such as Utilita who are not taking new customers and have a 'waitlist'  to switch?
Will they suddenly scrap it and be open for business in April?

They may decide to change their position on switching as the new capped rates from April will cause them to lose less money than they would now, and depending upon what happens with gas prices they may even be able to make a small profit, but that seems unlikely at the moment.

... but whatever they do in that regard it will not be because of this rule change as it doesn't impact on their customer acquisition policy, only on which tariffs they offer if they choose to offer tariffs.