Ofgem could make suppliers pay rivals for poaching customers
The Guardian reports that Ofgem, the energy regulator for Great Britain, is weighing a market stabilisation charge. Under the charge, energy suppliers that lure customers with cheaper deals would pay the rivals they take them from. The stated aim is to stop energy firms going bust. The Guardian describes this as under consideration, and no rate or start date is given. We found the account only in the Guardian, so it is single-sourced.
A supplier that poaches customers with low prices would face a cost, which weakens the incentive to undercut. Those affected are customers who switch for the cheapest fixed deal, and firms that might otherwise fail.
If your fixed deal ends soon, compare offers now rather than waiting, because cheap fixed deals could become scarcer if the charge returns. Do not act on the proposal alone, since nothing has been decided.
Protecting suppliers from failure and protecting customers' bargains pull in opposite directions here. Ofgem should say who ends up paying for a charge meant to keep rivals afloat.
DailyDrop U.K. edition No. 13 · Morning · SAT., OCT. 17, 2026