Martin Lewis warns Ofgem energy bill reform may allow firms to ‘charge what they like'

Martin Lewis has issued a warning that potential changes to energy bills could result in companies "charging what they like". The Money Saving Expert said Ofgem, the energy regulator, could try to "weaken" the low or no standing Price Cap alternative ahead of its planned roll out this winter.

This would involve having two energy bill Price Caps - one kept the same as it is now, and the other with higher unit rates but no standing charges. The latter option would be better for people who don't use a lot of gas or electricity so they don't have to pay a standing charge every year. However, Ofgem look to be tweaking these plans, saying it could require providers to have "at least one lower or zero standing charge offer".

Mr Lewis expressed two major concerns over this reform: that prices won't be regulated, and it could but vulnerable customers at risk.

He wrote on X: "If it's not part of the Price Cap it likely won't be price regulated, so firms can charge what they like.

"In other words they could choose to offer a no/low standing charge tariff but with hideously high unit rates defeating the purpose of getting it for almost everyone.

"One of the keys to ensuring it is within the Price Cap is it would mean that vulnerable customers who are low users could automatically defaulted to it. Outside the cap it would be a 'you must choose it' tariff."

Ofgem says it aims to have new tariffs available for customers in January 2026, subject to a consultation this autumn.

Its website reads: "As an alternative to making changes as part of the energy price cap, we are now also looking at whether to require suppliers to have available at all times, in all regions, at least one lower or zero standing charge offer.

"This approach would accelerate consumer access to more flexible pricing options, giving them more choice and control in how they pay for their standing charges.

"Suppliers have different customers to consider, and by having the ability to set these tariffs more flexibly, they may be able to better meet their customer’s needs."