Ofgem will force energy suppliers to offer customers the cheapest available tariff within two weeks of contact, starting April 2024. The regulator’s new consumer protection package, announced on Tuesday, also mandates automatic compensation for missed appointments and a single, standardised complaints process.
As reported by Solar Power Portal, the reforms follow a consultation that revealed 1 in 5 households had been overcharged by their supplier since 2021. The average overpayment was £187 per year.
Who qualifies, and who doesn’t
The rules apply to all domestic energy suppliers licensed by Ofgem. That covers every household in England, Wales, and Scotland. Northern Ireland has its own regulator, the Utility Regulator, which has not yet confirmed equivalent changes.
The key change: suppliers must proactively move customers on standard variable tariffs (SVTs) to their cheapest fixed deal within 14 days of any contact, a call, email, or online account login. Currently, only customers who explicitly ask get moved. Ofgem estimates this will save 8 million households an average of £210 a year.
But the catch: the rule only triggers if you contact your supplier first. If you do nothing, you stay on the expensive SVT. Ofgem has not mandated automatic switching for all customers, only those who initiate contact.
What it costs a typical 3-bed semi
For a semi-detached home using 12,000 kWh of gas and 3,000 kWh of electricity annually, the average SVT tariff currently costs £1,834 per year under the October price cap. The cheapest fixed deals available today run at about £1,550, a saving of £284.
That gap will widen. Ofgem expects fixed tariffs to become more competitive as wholesale prices stabilise. The new rules mean you can capture that saving without phoning around or using comparison sites, provided you contact your supplier.
Yet, the reforms do not address standing charges, which rose 12% in April 2023 and now add £300 to every household’s bill regardless of usage. Ofgem has promised a separate review of standing charges by mid-2024.
How to act now, and what it means for your EPC
The immediate action: call your supplier today. Even if you’re on a fixed deal, check when it ends. The new rules mean you can lock in a lower rate before the winter price cap rise in January.
For homeowners planning eco upgrades, the reforms create a stronger incentive to improve EPC ratings. A property rated C or above typically qualifies for the cheapest fixed tariffs, some suppliers offer discounts of up to 5% for EPC A or B homes. The Energy Saving Trust estimates a home moving from EPC D to C saves about £400 a year on energy bills before tariff changes.
But the bigger opportunity: use the money saved on your energy bill to fund insulation, solar panels, or a heat pump. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. With the new Ofgem rules reducing your annual outgoings, you can redirect that cash into long-term efficiency.
Ofgem’s reforms are a win for active consumers. The challenge: too many households will stay passive, and the regulator has not done enough to reach them. The onus remains on you to pick up the phone.
Frequently Asked Questions
No. The reforms require your existing supplier to move you to their cheapest available tariff if you contact them. You don't need to switch to a different company, though you may find better deals elsewhere.
The rules come into force on 1 April 2024. From that date, suppliers must comply with the 14-day switching requirement and automatic compensation for missed appointments.
