Martin Lewis has criticised Ofgem's proposed changes to energy tariffs, calling them a 'watered down' version of what was needed to help vulnerable households. The money-saving expert said the regulator's plans would not benefit those most in need, such as the elderly and disabled.
Ofgem has confirmed that energy suppliers must offer at least one tariff with lower standing charges from January, but it dropped earlier proposals to remove the fixed costs entirely. Standing charges are daily fees that cover the cost of supplying energy, regardless of usage.
Mr Lewis said the plans were 'disappointing' and accused Ofgem of 'smothering' hopes for a proper low-standing-charge option. He warned that the new tariffs would not be under the price cap, meaning suppliers could increase unit rates excessively, and that vulnerable low users who do not switch tariffs would miss out.
Ofgem defended its approach, stating that standing charges cannot be removed entirely but can only be shifted to unit rates. The regulator said the changes aim to give consumers more choice, not necessarily lower bills.
Consumer groups have also questioned the benefits, while Mr Lewis pledged to push back during the consultation process.
