Ofgem considers charging suppliers that win customers with lower prices

If Ofgem implements the fee after consultation, energy suppliers' competitive positioning would shift toward non-price differentiation, likely supporting retail margins and potentially reducing downward pressure on consumer bills in the near term.

Should the consultation conclude without formal implementation—either shelved or indefinitely delayed—the current price-competition regime would persist, leaving supplier profitability exposed to continued customer switching and margin compression during volatile wholesale periods.

If the fee is implemented but set at levels that severely restrict customer switching or trigger legal/political backlash forcing rapid reversal, the resulting regulatory uncertainty could create volatility in supplier valuations and complicate long-term investment planning in the retail energy sector.