Default tariffs for domestic customers at the end of fixed-term contracts

Publication date
14th August 2017
Closing date
15th September 2017
Policy areas
Status

We want to make sure that at the end of their fixed-term contracts, consumers are free to make a switch away if they choose and are not locked in with termination fees to further fixed term tariffs that may be poor value or inappropriate for them. They should also receive regular prompts to engage, to ensure they are aware of better deals that might be available.

Currently, suppliers are required, as a default, to roll their customers onto standard variable tariffs at the end of their existing fixed term deals. This means that consumers can switch away whenever they choose and are not locked in by termination fees. However, standard variable tariffs can be among the more expensive deals on the market.

We propose to allow suppliers to roll their customers onto further fixed-term tariffs at the end of their existing deals as long as those tariffs do not have any termination fees and are no more expensive than the standard variable tariff that the consumer would otherwise have been rolled onto.