Ofgem plans energy charge could threaten cheap switching deals

Summarised from 2 outlets · Updated 16 Oct, 19:20 · Archive

Ofgem is consulting on a Market Stabilisation Charge to protect suppliers, which could make switching to cheaper deals more expensive.

Ofgem has launched a consultation on a Market Stabilisation Charge that could be introduced as soon as November to protect energy suppliers from financial losses if wholesale prices fall sharply. The charge would mean energy firms pay rivals when customers switch away. Martin Lewis, founder of MoneySavingExpert, has warned the move could become a 'switching penalty' that dampens competition and pushes costs onto customers seeking cheaper deals.

How it is being reported

• Martin Lewis hits out at plans to introduce new energy bills ‘penalty’The MoneySavingExpert founder has warned this ‘market stabilisation charge’ could become a ‘switching penalty’The Independent · 16 Oct, 18:58
• Cheaper energy deals under threat over new switching rule plan, Martin Lewis warnsOfgem has begun a consultation into a new mechanism to protect companiesThe i Paper · 16 Oct, 17:51

In this story: Ofgem · Martin Lewis · MoneySavingExpert · UK

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