Martin Lewis warns Ofgem's switching 'penalty' plan will protect energy firms' profits at households' expense

Martin Lewis has attacked Ofgem's proposal to reintroduce a charge that could make switching to a cheaper energy deal more expensive this winter. The MoneySavingExpert founder warned the so-called Market Stabilisation Charge would act as a "form of switching penalty", forcing any supplier that wins a new customer to compensate the old one — with the cost likely passed on to bill payers. Ofgem launched the consultation on Monday, warning of "a difficult winter" driven by wholesale price volatility linked to the Middle East conflict.

Lewis said the charge means cheap fixes "will be a lot more expensive, in order to protect energy firms' profits."

Ofgem insists the measure would not automatically raise bills, but critics say it kills competition and locks households into higher tariffs.

The charge could be activated as soon as November; a similar scheme ran from April 2022 to March 2024 after Russia's invasion of Ukraine sent more than 30 suppliers bust.