Are New Customers Offered Lower Introductory Energy Tariffs Unavailable To Existing Customers?

WhataCrock

Sorry if this has been asked before. The last time I used this website was before the Covid 19 pandemic, and the UK energy market wasn't quite as rubbish then as it is now.

I'm an existing customer whose fixed dual-energy tariff is ending soon. I used the MSE Cheap Energy calculator and found a cheaper fixed tariff from my current supplier that they haven't offered me. When I asked them about it, they gave a generic response about variable monthly costs, which didn't answer my question. My question is: Do UK energy companies offer cheaper fixed tariffs to new customers that they don't offer to existing ones? I'm aware that insurance companies were recently prevented from engaging in this practice. 

If this practice is currently permitted in the residential energy supply market, I'm curious if the government or the energy regulator, Ofgem, has any plans to ban it in the future, as I believe it unfairly penalises existing customers.

QrizB

No. It's not permitted.

Suppliers are however allowed to offer lower tariffs to existing customers, that aren't available to new customers.

QrizB

WhataCrock said:

I'm an existing customer whose fixed dual-energy tariff is ending soon. I used the MSE Cheap Energy calculator and found a cheaper fixed tariff from my current supplier that they haven't offered me. When I asked them about it, they gave a generic response about variable monthly costs, which didn't answer my question. 

Who is your supplier, what's your current tariff and what is the new one? What rates apply, and what (if any) exit charges are there?

Scot_39

Are you sure the mse club rates are up to date and the deal still available  ?

There have been several posts questioning it in recent past.

Some suppliers fixed deals are changing a few times per month at times.

And I suspect they will tell you to check actual rates before actually signing up.

Bendo

QrizB said:

No. It's not permitted.

Suppliers are however allowed to offer lower tariffs to existing customers, that aren't available to new customers.

They just get around it with new customer bonus payments like Octopus referrals . 

MWT

Bendo said:

QrizB said:

No. It's not permitted.

Suppliers are however allowed to offer lower tariffs to existing customers, that aren't available to new customers.

They just get around it with new customer bonus payments like Octopus referrals . 

It isn't 'getting around it' as for every new customer receiving a bonus there has to be an existing customer receiving the same amount...