Martin Lewis says 'these aren't normal times' amid planned energy bill change

Martin Lewis said "these aren't normal times" amid plans that could see energy bills decrease in price. The ban on energy companies offering lower-cost deals solely to new consumers could be lifted from October.

This change will encourage competition amongst suppliers once again, according to regulator Ofgem. The organisation is currently consulting on eliminating the ban on acquisition-only tariffs - discounted rates that only apply to new customers aiming to poach them from other providers.

The ban was put into effect temporarily in April 2022 to aid consumers during the energy crisis and was originally set to expire in March of the following year. However, as the energy sector continues to stabilise, the regulatory body believes it might be prudent to abolish the ban soon, reports Wales Online.

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The move could potentially quicken the return of competition in the industry, leading to superior price savings and service standards for users. MoneySavingExpert.com's founder and chairman, Martin Lewis, said: "The energy market is broken. We need anything possible right now to stimulate competition and bring prices down.

"In normal times, I wouldn't call for firms to be allowed to offer new customers cheaper prices than existing, yet these aren't normal times. The current UK retail energy system was built on the premise that firms would fight each other for customers and compete on price yet that's hardly happening.

"Most firms are currently happy to sit on their existing customers and profit where once you could switch and save 30%, now it's a few per cent at most. So, in reality, the Energy Price Cap, set up as a remedial backstop rate, is now pretty much the price."

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.

"It makes complete sense for Ofgem to remove the piece of regulation that is actively holding this back. Removing the ban will incentivise providers to work harder to compete for customers on price, service and choice."

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