Money expert Martin Lewis has hit out at the energy price cost being inflicted on households. The financial journalist, 51, was interviewing Ofgem chief executive Jonathan Brearley on ITV's Good Morning Britain following the news that the typical annual household energy bill will fall to £2,074 a year from July.
On Thursday, May 25, Ofgem slashed energy bills for everyone in the country, cutting the energy price cap by 17%. The reduction is slightly less than the 17.5% that had been forecast. It means that the average household, which currently pays no more than £2,500 a year for gas and electricity, will now pay an average of £2,074 - the exact amount you pay depends on how much you use. The standing charge is £300 a year.
“You accept that it’s a moral hazard to make people pay £300 a year to have the facility to have gas and electricity?” Martin asked Jonathan. “When they’re lower users they can’t cut back anymore.”
