Martin Lewis warns households could face an energy 'switching penalty' as Ofgem plots a new charge threatening cheap deals

Ofgem's proposed 'market stabilisation charge' would make energy firms pay a customer's former supplier whenever that customer moves away. The watchdog opened a consultation on Monday, and the charge could be switched on as soon as November. Martin Lewis said it would 'dampen competition' and make cheap fixes far pricier if wholesale prices plunge. Ofgem insists it protects consumers from winter volatility.

The charge was last used in April 2022, after Russia invaded Ukraine and prices spiked.

Lewis says the real aim is 'to protect energy firms' profits'.

Ofgem's Neil Kenward is bracing for 'a difficult winter for many households'.