Martin Lewis Ofgem price cap

The energy regulator wants to review the energy price cap every three months, instead of the current six.

‘My first reaction to 3 month price caps to “enable prices to come down quicker when wholesale prices fall” was that of incredulity. ‘Its logic was this’d prevent other firms needing to ‘exit the market’. For years I’ve been pushing it for better controls in who they allow to set up energy firms. ‘Please accept that was (and this is) an emotional rant, not a considered piece. ‘Combine that with meeting industry’s demand for a new more frequent ‘every three month’ price cap change – Carefully calibrated for the first three months to include SIX months of wholesale prices (so the price factors in the highest wholesale rates in history) so firms don’t miss out… Killing hopes of firms launching cheaper deals.’ It comes almost nine in ten people say they are worried about the current cost of living crisis, to the extent that a quarter say it is their leading source of stress.

Money Saving Expert alleges regulator had 'ignored all asks for consumers and instead kowtowed to the industry'

On Monday, Ofgem unveiled proposals to review the cap every three months. Under new rules being drawn up by the regulator, bills could rise and fall four times a year, instead of twice as they do currently. Start your Independent Premium subscription today.

Martin Lewis apologises for branding Ofgem a 'f***ing disgrace' after energy regulator announced it may review price cap four times a year rather than two...

He added: 'With the Russian invasion of Ukraine, we are seeing a sustained increase, a further increase, in gas prices. Ofgem considers a range of information when deciding where the price cap should be set. 'Its logic was this would prevent other firms needing to 'exit the market'. For years I've been pushing it for better controls in who they allow to set up energy firms. Ofgem chief executive Jonathan Brearley has said that proposed changes to review the energy price cap four times a year would mean that bills could go up quicker, but they will also fall more rapidly. It is understood the briefing took place online via Microsoft Teams. The price that energy suppliers pay for the gas and electricity they buy is a major part of this. The energy price cap - currently at a record £1,971 per year for the average household - is reviewed every six months and changed in October and April. 'Combine that with meeting industry's demand for a new more frequent 'every 3mth' price cap change - Carefully calibrated for the first 3 months to include SIX months of wholesale prices (so the price factors in the highest wholesale rates in history) so firms don't miss out...' The energy regulator - which earlier this year increased the cap to a record £1,971 per year for the average household due to rising wholesale gas prices - said the plans would help firms more easily pass on savings more quickly. The energy price cap is the maximum price suppliers can charge customers on a standard or default tariff. It comes as Ofgem today said it was considering changing its biannual review of the energy price cap - which sets the maximum average cost of default standard variable tariffs - to every three months. - Ofgem could review the price cap four times a year - instead of every six months

Money saving guru Martin Lewis has tweeted an apology to staff of the energy regulator Ofgem, after he swore at them in a meeting.

He said: "Please accept that was (and this is) an emotional rant, not a considered piece. "Its logic was this'd prevent other firms needing to 'exit the market'. For years I've been pushing it for better controls in who they allow to set up energy firms. My ire's institutional not individual, its was inappropriate..."

The money saving expert said he should have behaved better and wants to formally apologise.

"Its logic was this'd prevent other firms needing to 'exit the market'. For years I've been pushing it for better controls in who they allow to set up energy firms. He said: “It would also help energy suppliers better predict how much energy they need to purchase for their customers, reducing the risk of further supplier failures, which ultimately pushes up costs for consumers. Ofgem would be looking to implement the reforms from October, meaning the first change under the new system would be made in January. I lost it when getting a briefing about today's proposals, where it feels like at every turn, in these desperate times where lives are at risk, it has ignored all asks for consumers and instead kowtowed to the industry (I hope history proves me wrong)." Martin Lewis has said sorry for 'losing his rag' during a briefing with Ofgem staff about proposed changes to the watchdog's energy cap. It would help pass on savings from a potential fall in gas prices to customers more rapidly, Ofgem said, and also protect under-pressure energy suppliers from being damaged by the cap.

MoneySavingExpert founder Martin Lewis flared up at the Ofgem energy regulator over its latest plans, saying their planned changes will 'sell consumers down ...

The price cap works by limiting how much the average home pays for power every year if they pay by direct debit on a variable rate tariff. This could cause further immense financial strain and damaging health and well-being as prices soar every few months." I have had good meetings with Ofgem for years, so I'm sorry this blew up (they were calm I wasn't)... To stop this happening again when gas prices fall, Ofgem's solution is the 'market stabilisation charge'. This is a fee that energy firm B would pay to energy firm A for taking its customers if gas prices fall. Ofgem is also reviewing how often it changes the price cap it oversees. The energy regulator wants to bring in a fee payable by energy firms that bring out cheap deals - and it is under fire for being uncompetitive.

The UK's most popular finance expert Martin Lewis has apologised after branding Ofgem's proposed energy price cap changes a “f******…

Ofgem considers a range of information when deciding where the price cap should be set. The price that energy suppliers pay for the gas and electricity they buy is a major part of this. You’ve done enough, politely enough, for long enough, to have just about had enough. “The last year has shown that we need to make changes to the price cap so that suppliers are better able to manage risks in these unprecedented market conditions.” “Today’s proposed change would mean the price cap is more reflective of current market prices and any price falls would be delivered more quickly to consumers,” said Ofgem chief executive Jonathan Brearley. The Money Saving Expert founder apologised to Ofgem employees for “losing his rag” after he accused the energy regulator of “selling customers down the river”.