Why the regulator's plan to lift a ban on cheap energy deals may undermine consumers confidence their supplier is acting in their best interests.
This ban, deemed a temporary fix during the height of the energy crisis to stabilise the market, has in fact helped give customers confidence that their supplier is acting in their best interests. Which? believes that removing the ban would be a mistake. It would be unfair for existing customers to not have the same access to the best deals that new customers would be offered to join.. They became such an issue in the insurance sector that the regulator, the Financial Conduct Authority, had to step in and ban firms charging existing customers more than new ones.
That’s why we, along with a host of energy suppliers and consumer groups, have written to Ofgem, urging the regulator to reconsider its proposals. In a joint letter with energy firms E.ON, Octopus, So Energy, Rebel Energy and fellow consumer groups End Fuel Poverty Coalition, Citizens Advice and Fair by Design, we not only highlight the inherent unfairness of penalising existing customers, but raise the potential impact on customers in debt, who may not be able to switch providers.