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Octopus Energy has vowed to offer its customers access to the same deals regardless of how long they have been with the supplier, as Ofgem considers lifting the ban on acquisition only tariffs (BAT).
The retailer has said it is “putting its money where its mouth is” by refusing to introducing tariffs solely available to new customers if/ when the BAT is removed.
Octopus’ ‘Same Price Promise’ comes in response to Ofgem’s announcement that it is minded-to lift the BAT which was introduced in 2022 alongside the Market Stabilisation Charge (MSC) to ensure fair competition as wholesale energy prices began to soar.
In a recent survey run by YouGov, nine out of 10 (89%) respondents agreed that energy suppliers should offer the exact same deals to both new and existing customers.
Octopus has been one of the retail sector’s most vocal critics of Ofgem’s minded-to position to lift the BAT, which prevents suppliers offering cheaper deals exclusively to new customers, in October. It is currently scheduled to run until 31 March 2025.
Greg Jackson, founder of Octopus Energy Group, said: “It’s totally unfair to block loyal customers from the best deals. So regardless of being a new or long term customer, our pledge is to offer Octopus customers access to the same best deals however long they’ve been with us.
“Energy doesn’t need Del Boy deals, and hide and seek pricing. It needs fair and transparent tariffs, with the energy price cap to protect everyone.
“The latest data from Electralink shows switching returning to pre-crisis levels, illustrating that customers are confident to find the best companies and energy tariffs for them.”
The figures referred to by Jackson were covered in a recent Utility Week article.
Electralink’s latest figures show switching in April soared to the highest level since October 2021. There were 287,000 switches completed last month – 28% more than the month before and a 45% increase on April 2023.
“These stats show it is perfectly possible to have competition with the ban on acquisition tariffs in place. Where there are wholesale cost reductions and efficiencies available, suppliers will pass these through to customers, both to gain new customers and to keep existing customers for longer. And that’s what we’re beginning to see,” Fletcher told Utility Week.
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