A fairer deal for UK households: ENGIE welcomes energy regulator decision to end requirement for Standard Variable Tariffs at the end of contracts
ENGIE, the first UK energy provider to commit to rolling customers on to its cheapest tariff, has welcomed Wednesday’s announcement by the energy regulator to end the requirement for energy providers to move customers onto standard variable tariffs at the end of their contracts.
ENGIE launched its home energy business in May with a pledge to automatically move its customers onto its cheapest available tariff when their fixed plan ends, with no exit fees if customers then decide to change supplier. It is the largest company to enter the UK home energy market for 15 years and has signalled its intention to offer a new kind of energy. Until now, under the terms of the Ofgem licence, ENGIE has only been able to roll customers onto a variable rate and has been working with the regulator over the summer to extend the benefit to UK households by enabling them to roll onto the cheapest ENGIE fixed term deal available to them.
Wilfrid Petrie, CEO of ENGIE UK & Ireland, said: “We’re extremely encouraged that Ofgem has brought the principle of our rate rollover promise into licence. “Until now Ofgem has required energy providers to move their customers onto standard variable tariffs as a default – this is so that customers are not locked in and to make the switching process easier.
“However, unfortunately more often than not these SVTs are expensive and do not offer good value to households. Our own research has shown that switching rates are still worryingly low so we believe the onus should be on energy companies – not customers – to ensure they are providing value for money.
“Wednesday’s decision means that all ENGIE customers will now automatically be rolled on to a fixed term tariff at the end of their contract, giving them peace of mind that their bills will be competitive, clear and predictable - with no penalty if they choose to switch supplier.”
ENGIE will immediately implement Ofgem’s statutory change and roll customers onto the cheapest ENGIE fixed term deal available to them, with no exit fee.
For full details of all available ENGIE home energy products, please visit: home.engie.co.uk.