Martin Lewis responds to Ofgem energy price cap announcement

Up to five million vulnerable and prepay energy customers could see their bills rise by an average £58 a year after the regulator Ofgem announced plans to increase the price cap from April.

In response to the changes, Martin Lewis, founder of MoneySavingExpert.com, said:

“The rise in the price cap leaves the whole thing feeling somewhat flaccid. For someone on typical bills of £1,132 a year, paying by direct debit, it is a reduction of just £43 – and even for those on the worst big 6 tariff it’s just £77. Contrast that to the £300+ annual savings available to those who switch, and it raises a worry that a continued erosion of the reduction will leave this as a dangerous halfway house giving vulnerable customers false comfort that they are not being ripped off, while disinclining them from engaging in the switching market where they’d save large.”