Sun. Jun 26th, 2022

The policy will mean that these deals must be offered to both new and existing customers, as well as stopping loyal customers being penalised for not switching suppliers. Since September last year, more than two dozen energy companies have gone bust, having relied on new customers with discounted deals and loss making prices to stay solvent.

They were unable to stay afloat when the price of gas on the wholesale market dramatically increased.

The policy, set to be implemented on April 14, will remain in place for six months before Ofgem reviews it and decides whether it will become permanent.

Simon Oscroft, co-founder of energy supplier So Energy, said the policy would, “help build a more resilient and fairer energy energy market as we begin to emerge from this crisis”.

In a statement, Ofgem said: “The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once-in-a-30-year event.

“We’re putting in place short-term measures to protect customers.

“All suppliers will have to offer existing customers the same deals available to new customers.

“This will ensure customers can benefit from all tariffs available in the market and enable more customers to benefit when wholesale prices fall.

READ MORE: Cold Weather Payment recipients ‘should get £500’ DWP told

Global gas prices have risen at record levels over the past six months, meaning energy bills may rise yet again in October after the price cap is next revised.

There are fears that British citizens may face a “cost of living catastrophe”, with increases in food prices and National Insurance payments.

The Bank of England has predicted spending power will fall by 2 percent in 2022, as wage rises are not keeping up with the increase in the cost of living.

This is only the third time such a fall has taken place since 1990.

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Wizadclick | WAC MAG 2022