Decision: Default tariffs for domestic customers at the end of fixed-term contracts
Licence modification
- Publication date
- Industry sector
- Supply and Retail Market
We want to make sure that at the end of their fixed-term contracts, customers 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.
In addition to guaranteeing certain protections for fixed-term customers, we also want to encourage and allow room for suppliers to deliver better outcomes for their customers.
To help achieve these aims, we have decided to allow suppliers, at the end of a fixed-term contract, to roll a customer that has not made an active choice onto a further fixed-term tariff, as long as that further tariff:
- Does not have any penalties for early termination;
- Is the same price or cheaper than the variable tariff that the customer would otherwise have been rolled onto; and
- Is similar in nature to the customer’s current tariff, taking into account their characteristics and preferences (including in respect of tariff type, online account management, meter type and payment method).