Martin Lewis warns an Ofgem 'switching penalty' could make cheap energy deals pricier for switchers as soon as November

The watchdog's proposed 'market stabilisation charge' would make energy firms pay a customer's old supplier when that customer switches away. Ofgem says the charge would shield providers if wholesale prices crash and households leave in large numbers. The MoneySavingExpert founder says it will 'dampen competition' and load costs onto switchers. Ofgem opened its consultation on the plan on Monday.

The charge was last switched on in April 2022, after Russia invaded Ukraine.

Lewis says cheap fixes would get 'a lot more expensive' to protect energy firms' profits.

Ofgem's Neil Kenward insists the charge protects consumers ahead of a 'difficult winter'.