Money Saving Expert’s Martin Lewis has apologised on Twitter after he branded Ofgem’s energy price cap proposals a “f***ing disgrace”.
Lewis, who was present for the briefing, has expressed his frustration over the latest proposals on Twitter, which he believe would have “dire consequences for consumers”.
Ofgem have proposed changes to the energy price cap, which helps to regulate energy prices for UK households.
However, in its latest review in April, the cap increased by 54%, leading to high gas prices for consumers.
Here’s everything you need to know about what was said and how the energy price cap changes could affect you.
What is the energy price cap?
The energy price cap puts a limit on how much energy companies can charge consumers.
The cap is reviewed by Ofgem every six months, with the last review taking place in April.
It increased by 54% to its highest ever rate in April, with the average household bill now at £1,971 a year.
Since the cap change was introduced, 22 million households have seen bills rise by £693 and for customers with prepaid meters this has increased to £708.
Energy prices are the leading cause of inflation in the UK, which is set to reach 10%, the highest it has been in 30 years.
The price cap changes depending on the wholesale price of energy and supplier costs.
The price of gas has increased by 250% since January, due to lower global supplies and other events such as the war in Ukraine.
What did Martin Lewis say about the energy price cap?
The money saving expert branded the energy cap proposals a, "f***ing disgrace" during a briefing on 16 May.
The briefing was not televised, but Lewis decided to take to Twitter to apologise to Ofgem for “losing his rag.”
Lewis tweeted: "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)."
He added that he feared "dire consequences for consumers", urging consumers to "do more to make things better than them".
“I pray when I do further analysis I have to apologise again as I’ve got it very wrong,” he said.
He also explained that the proposed “market stabilisation charge” could make it harder for consumers to find competitive prices.
He added: “My breaking point was when hearing how instead of listening to calls to scrap its proposed market stabilisation charge, it was making it harsher to really ‘stop the harmful effects of competition.’”
What has Ofgem proposed?
Ofgem revealed their proposals on 16 May, to instead review the energy cap every three months, instead of every six months.
However, the first price cap under the new system would be calculated using the previous six months of wholesale energy prices, which at present have increased by 250%.
This means that consumers would still be stuck with high energy prices.
Ofgem have said that by reviewing the cap every three months, it would be able to provide consumers with the most accurate energy prices.
They suggested that this would help customers who would see costs reduce quicker if prices fall.
However, with the current rate of inflation set to hit 10%, many people are wondering when prices for energy will fall.
Speaking with BBC News, Peter Smith, the Chairman of National Energy Action, an organisation that campaigns against fuel poverty explained their concerns about the changes, explaing they could “cause further immense financial strain”.
The charity took to Twitter to further share their concerns tweeting:
“The changes significantly reduce the current protection the price cap affords all consumers over winter and opens the door to significant price rises during the coldest months of the year. In the short term at least, the changes will be particularly damaging for the poorest households, removing the certainty of what they will pay over winter.”