Martin Lewis warns Ofgem's energy 'switching penalty' plan will protect supplier profits at households' expense
Martin Lewis has spoken out against Ofgem's proposal to bring back a market stabilisation charge, arguing it functions as a "switching penalty" that will push up the cost of cheap energy deals whenever wholesale prices decline. The consumer champion contends the measure will "dampen competition" and shield energy companies' profits rather than reducing household bills. Ofgem opened a consultation on Monday, citing a "difficult winter" as Middle East tensions drive wholesale gas prices sharply upward.
Under the proposed charge, any supplier that attracts a customer through a cheaper deal would have to pay the previous supplier 85% of the price difference.
The mechanism was last used between April 2022 and March 2024 after Russia's Ukraine invasion sent more than 30 energy firms bust.
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The IndependentMartin Lewis reacts to new proposals for Brits switching energy providersThe IndependentMartin Lewis hits out at plans to introduce new energy bills ‘penalty’Daily MailHouseholds risk missing out on cheaper energy deals under new plansThe SunHouseholds could be stung by ‘switching penalty’ on energy bills, Martin Lewis warns – as watchdog plots major changeEvening StandardOfgem planning action to cushion energy firms from wholesale price swingsReutersUK watchdog moves to protect energy market from wholesale price swingsManchester Evening NewsMartin Lewis warns of 'penalty' as UK households hit with energy price hike - Manchester Evening NewsKfm RadioYuno Energy Latest Company To Announce Winter Price FreezeMoney Saving ExpertMartin Lewis: Plan to introduce charges for switching energy tariff "ain't good for consumers" - Money Saving ExpertThe JournalYuno energy becomes third company to freeze prices after raising them earlier this year - The JournalRTÉ IrelandYuno Energy to freeze prices for customers until next yearThe GuardianOfgem could force energy suppliers to pay rivals if they lure customers with cheaper deals
