Proactive Investors - Energy firms will be allowed to entice customers with cheaper deals from October after Ofcom floated plans to lift the current ban on competition between suppliers.
Introduced as a short-term measure in April 2022, suppliers aren’t allowed currently to offer better deals to new customers,
Ofcom said that it is time to lift the restriction to help the energy market stabilise.
Richard Neudegg, director of regulation at Uswitch, said: “Getting rid of the ban on acquisition-only tariffs in October heralds good news for households seeking cheaper energy bills.
“With a final decision from Ofgem due in July, this move is a no-brainer to improve the chances of decent fixed deals in time for winter.
“Forcing providers to offer the same energy deals to new and existing customers has meant that suppliers have been encouraged to give up delivering cheap deals.
“But with the price cap changing every three months, consumers desperately need good value fix options to give them more certainty on their bills.“