Published • loading... • Updated
Martin Lewis Says ‘I Don’t Like It’ as Ofgem Plans New Energy Charge
Ofgem says the charge could protect suppliers if wholesale prices fall sharply and customers switch away from capped tariffs.
- Ofgem launched a consultation on reactivating the Market Stabilisation Charge, potentially effective from November 2026, with responses due by October 29.
- To prevent losses when customers switch providers, the regulator argues suppliers must purchase energy in advance to meet Price Cap obligations during sharp wholesale price drops.
- If wholesale prices fall more than 10% below Price Cap levels, new suppliers must pay 85% of the drop to previous firms; Martin Lewis called this "basically a form of switching penalty."
- Lewis warned the charge dampens competition and protects firm profits, stating it feels "raw" to prioritize corporate stability over consumer savings given recent large energy firm profits.
- While technically a consultation, Lewis said the measure "will almost certainly happen," potentially reducing household savings as new suppliers pass compensation costs to customers through higher tariffs.
Insights by Ground AI
12 Articles
12 Articles
Coverage Details
Total News Sources12
Leaning Left3Leaning Right0Center9Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
L 25%
C 75%
Factuality
To view factuality data please Upgrade to Premium
