- Consumer champion Martin Lewis has criticised Ofgem proposals to introduce a market stabilisation charge, warning it could effectively act as a switching penalty for energy consumers.
- The scheme could force energy providers offering cheap switcher deals to compensate a customer's former supplier if wholesale energy prices drop sharply.
- Energy regulator Ofgem launched a consultation on the measure to protect the energy market from potential price volatility ahead of a difficult winter.
- Mr Lewis argued the move would dampen market competition and protect supplier profits, limiting the savings available to householders if wholesale rates fall.
- The mechanism was previously utilised between April 2022 and March 2024 to stabilise the market following Russia's invasion of Ukraine.
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