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'Switching penalty': Martin Lewis warns Ofgem plan could make cheaper energy deals more expensive for households

'Switching penalty': Martin Lewis warns Ofgem plan could make cheaper energy deals more expensive for households

Under Ofgem's proposal, a supplier winning a customer would pay the old firm 85% of any wholesale price drop beyond 10% below the price cap. The regulator's consultation could see the market stabilisation charge switched back on as soon as November 2026. It ran from April 2022 to March 2024 after Russia invaded Ukraine. Ofgem says reactivating it would not automatically push up bills.

Martin Lewis said 'I don't like it' and does not want the move to 'slip under the radar'.

Barrister Dean Dunham KC asked whether Ofgem has forgotten who it is supposed to be protecting.

Forecasters are warning that energy bills could jump by close to £300 more from January.

MoreEvening StandardOfgem planning action to cushion energy firms from wholesale price swingsLBCEnergy companies could be compensated when you switch to a cheaper deal. Has Ofgem forgotten who it’s supposed to be protecting? writes Dean Dunham KCThe HeraldMartin Lewis says ‘I don’t like it’ as Ofgem plans new energy charge
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