Martin Lewis furious at Ofgem’s ‘f****** embarrassing’ price cap plan

Martin Lewis, the money-saving expert, has bristled at energy regulator Ofgem, calling it a “bloody shame” for proposed changes to its price cap that he said would give consumers a worse deal and protect supplier profits. .

Lewis tweeted to apologize to Ofgem staff for “losing their minds” on a call to discuss a planned review of price cap rules.

Under new rules being drawn up by the regulator, bills could go up and down four times a year, instead of twice as they currently do. But Lewis told Ofgem that he had sold to consumers “downstream”.

He tweeted: “Missed when I received a briefing on today’s proposals, where it seems that at every turn, in these desperate times where lives are at risk, you have ignored all requests from consumers and instead given in. to the industry (I hope history proves me wrong)”.

Lewis said he feared “dire consequences for consumers”, arguing that “we need to do more to make things better than them”.

National Energy Action, which campaigns to prevent energy poverty, said the changes could “cause even greater financial strain”.

Peter Smith. NE policy director, said: “This change has the added impact of reducing protections for fuel-poor households.”

It came as government minister Racheal Maclean drew ire on Monday by suggesting that people struggling in Britain’s cost-of-living crisis should work longer hours or get a better job. Last week, Conservative MP Lee Anderson suggested that poor people use food banks because they don’t know how to cook or budget.

The energy price cap rose 54 per cent in April, raising the average household’s bill to £1,971, with a stronger increase expected in October. Energy prices have been the main driver of inflation, which is expected to reach 10 percent this winter, which will reduce the pressure on household budgets.

On Monday, Ofgem unveiled proposals to review the cap every three months. However, the first period of maximum prices under the new regime would be calculated using the last six months of wholesale gas and electricity prices, which have reached all-time highs.

Ofgem said more frequent changes would reflect the most up-to-date energy prices, meaning customers would see the benefit sooner when prices drop.

Lewis also warned that the so-called “market stabilization charge” would entrench the power of a small group of established energy providers.

He added: “I ended the call by asking you to at least consider reducing standard charges, whose huge rates prevent people from really saving by reducing energy use.”

Leave a Reply

Your email address will not be published.