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

Martin Lewis has blasted Ofgem's plan to reintroduce a Market Stabilisation Charge as a "form of switching penalty" that will make cheap energy deals more expensive for anyone who tries to switch supplier. The MoneySavingExpert founder warned the scheme will "dampen competition" and force costs onto consumers rather than firms.

Ofgem opened a consultation this week on reviving the charge, which could be in place by November to shield suppliers from swings in wholesale prices over the coming winter.

Lewis warned: 'If wholesale energy prices drop sharply, the cheap fixes and switcher deals offered will be a lot more expensive, in order to protect energy firms' profits.'

The charge was previously active from April 2022 to March 2024 after Russia's Ukraine invasion sent gas markets into chaos.