Fair By Design responds on the ban on acquisition tariffs

Fair By Design, an independent organisation campaigning against the poverty premium, published its response to Ofgem's consultation on the ban on acquisition-only tariffs on 7 November 2024¹. The response, listed among the organisation's consultation responses on energy, states that it focuses on the positive impact the ban has had¹.

The published summary of the response reads, in the organisation's own words:

"Our response focuses on the positive impact the ban on acquisition tariffs has had on…"

Fair By Design, source¹

The same wording appears in the related posts listings on Fair By Design's other energy consultation pages, each dated 7 November 2024². No further detail from the response itself, such as figures on tariff levels or the number of households affected, appears in the published material¹.

Acquisition-only tariffs are deals offered to new customers but not to a supplier's existing ones. The ban on them sits within the regulation-policy area covering Ofgem's retail market rules.

Fair By Design's wider energy positions, set out across its consultation responses, include calls for a social tariff, reform of standing charges, and a debt relief scheme. It has said:

"We emphasis the need for more targeted bill support, a social tariff."

Fair By Design, source¹

"We support reforming standing charges but urge Ofgem to ensure changes genuinely benefit low-income households."

Fair By Design, source¹

"We warmly welcome Ofgem's proposal for a debt relief scheme."

Fair By Design, source¹

In its June 2024 response to Ofgem's call for input on energy affordability and debt, the organisation also called on the government to introduce a discounted tariff for households unable to afford the energy needed to keep them safe and well, a temporary Help to Repay scheme for those in energy arrears, and to scrap VAT on energy bills. It called on Ofgem to eliminate the standard credit premium, reduce standing charges and tackle back-billing so consumers do not face shock bills going back up to a year¹.

Why it matters for households

Acquisition-only tariffs were cheaper deals reserved for new customers, which meant households that stayed with a supplier could pay more than those who switched. The ban, which Fair By Design says has had a positive impact¹, affects how suppliers can price their offers to new and existing customers alike.

The organisation's responses also address costs that apply regardless of which tariff a household is on. Standing charges are fixed daily amounts added to bills, and Fair By Design has argued that changes to them should genuinely benefit low-income households¹. The standard credit premium is the difference in cost between paying by direct debit and paying by other methods; the organisation has said the way people pay for their energy should not lead to an increase in costs¹.

Its calls on affordability and debt are aimed at households on low incomes, including those in arrears. The proposals it has put to government and Ofgem include a discounted tariff, a temporary Help to Repay scheme and removing VAT from energy bills¹. These are positions put forward in consultation responses, not confirmed policy.