Derogations from SLC 22B – requirement to make all tariffs available to new and existing customers
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
- Publication date
- Closed date
- Industry sector
- Supply and Retail Market
- Licence type
- Electricity Supply Licence
- Gas Supplier Licence
- Decision
From 14 April 2022, SLC 22B will require domestic suppliers to make all their tariffs available to new and existing customers. Ofgem has introduced this measure as a short-term intervention to address risks to consumers from ongoing wholesale market volatility.
SLC 22B provides for Ofgem to exempt from this policy measure any tariffs which do not affect the risks we are concerned about and can otherwise be seen as being beneficial to customers. We specified that this could include ‘retention’ tariffs that are targeted at existing customers only.
Market-wide derogation for fixed-term tariffs for existing customers only
Our ongoing engagement with suppliers has revealed that many are intending to request a derogation from SLC 22B for the purpose of being able to continue offering fixed-term retention tariffs. We do not consider that these tariffs affect the risks we are concerned about in relation to market stability, and consider they can otherwise have wider benefits to consumers.
Ofgem is proposing to issue a market-wide derogation from SLC 22B for fixed-term tariffs that are targeted at existing customers only (i.e. not open to new customers). We think that this approach would allow for a more efficient and transparent process for all concerned.
We have today published a draft open letter signalling this and we would welcome views by consultation closing date. We will publish our final decision together with a derogation direction, which will come into effect from 14 April 2022 and last for the duration of SLC 22B (as may be extended by the Authority).
Derogation requests for other types of tariffs
For all other types of derogation requests, we have today published guidance which explains the process for making a derogation request application.
For suppliers wishing to continue existing tariffs after 14 April, we request that suppliers submit their derogation requests by no later than 18 March 2022. We will respond to derogation requests to confirm the outcome by no later than 7 April 2022. For those received after 18 March, we will respond to these as soon as possible.
Before submitting a formal derogation application, we encourage suppliers to contact us at retailpolicyinterventions@ofgem.gov.uk to seek advice on the process and the required information.