Energy UK‘s deputy chief executive, Dhara Vyas, has supported Ofgem’s decision to retain BAT until at least March next year.
Ms Vyas stated that the BAT has provided reassurance for customers during challenging times and should only be modified as part of a broader review of competition and price protection.
She said: “There have been positive signs in the retail market over recent months – we are seeing fixed tariff offers returning to the market as well as an increase in switching.
“While the BAT has been an effective measure, it is also right that Ofgem is looking beyond switching as a way to measure engagement with energy.
“Focusing solely on short term price competition fails to see the important roles customer loyalty and non-price competition can play in a fair and competitive retail market.”
Gillian Cooper, Director of Energy at Citizens Advice, also endorsed Ofgem’s decision, noting that extending the BAT ensures loyal customers are not penalised and that the 2.3 million households in debt to their energy suppliers can still access better deals.
Ms Cooper said: “The energy market is increasingly complex and this decision will provide some certainty to the millions of customers worried about their energy bills and who rely on a stable energy market.
“Ofgem’s taken an important step towards fairer pricing and higher standards in the energy market and we’ll be keeping a close eye on how this affects consumers.”
Rocio Concha, Which? Director of Policy and Advocacy, said: “Removing the ban would have risked shutting existing customers out from the best deals, opening the door to loyalty penalties.
“Our research has shown that consumers overwhelmingly believe this is unfair – even when they might stand to benefit.”
Simon Francis, coordinator of the End Fuel Poverty Coalition, commented: “With energy debt levels rising due to the record energy prices, now is not the time to allow firms to offer these tariffs, which also disadvantage existing loyal customers and risk creating market instability.”
