Renowned financial expert Martin Lewis has sounded the alarm regarding an Ofgem ban that could affect customers of major energy providers including British Gas, OVO, EDF, EOn Next, and Octopus. Lewis took to Twitter/X to express his concerns over a consultation initiated by the energy regulator, proposing to prohibit acquisition-only tariffs from October.
Lewis stated, “Ofgem is to consult on ending the ban on acquisition-only tariffs (new customer only deals), possibly by October. That’s still too long away but better than nowt.” He further added, “The energy market is broken. We need anything possible right now to stimulate competition and bring prices down.”
Highlighting his disagreement with Ofgem’s previous stance, Lewis emphasized the urgent need for measures to facilitate cheaper deals for consumers. He noted, “In normal times, I wouldn’t call for firms to be allowed to offer new customers cheaper prices than existing, yet these aren’t normal times.”
Lewis underscored the disparity in the current energy market compared to its foundational premise, wherein companies were expected to compete vigorously for customers. He remarked, “Most firms are currently happy to sit on their existing customers and profit – where once you could switch and save 30 per cent, now it’s a few percent at most.”
Responding to Lewis’s tweet, Twitter/X user Truman expressed support for addressing standing charges, which disproportionately impact lower-income individuals. Another user, Justin, weighed in on the debate, suggesting that correctly setting the energy price cap should minimize the discrepancy in pricing between fixed deals and standard tariffs.