15/08/2017

Ofgem is proposing that energy providers should only be allowed to roll their customers onto further fixed-term tariffs at the end of existing deals if

  1. The new tariffs have no termination fees so consumers can switch away at no cost whenever they choose.
  2. The new tariffs are no more expensive than the standard variable tariff, onto which providers are required to roll their customers by default when their fixed term deals end.

While standard variable tariffs carry no termination fees and customers can switch out of them without penalty, they can also be among the most expensive deals on the market.

‘Default tariffs for domestic consumers at the end of fixed-term contracts’, includes a proposal for customers to receive regular prompts to ensure they are aware of better deals that might be available in further support of Ofgem’s aim of making it as easy as possible for customers to switch suppliers.