Martin Lewis apologises for X-rated outburst at Ofgem over energy price cap changes

Martin Lewis has issued an apologetic statement following an ’emotional rant’ during a meeting with Ofgem. The founder of Money Saving Expert was attending a briefing during which he was unable to keep his true feelings quiet.

He admits that he lost his rag while Ofgem staff discussed proposed changes to the watchdog’s energy cap. In a thread of tweets he also admitted that he should have behaved better and formally apologised, reports Wales Online.

The proposals that could see the price cap change four times a year, rather than twice a year. This could see prices rising, or falling, more every three months. Martin branded this a “f****** disgrace”.

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In his tweets posted on Monday (May 16), he said: “I’d like to formally apologise to the @ofgem staff for losing my rag in a background briefing just now and saying its changes are a ‘f***ing disgrace that sells consumers down the river’.

“I should’ve behaved better. My ire’s institutional not individual, its was inappropriate. 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).”

The price cap on household energy bills could be reviewed every three months under new plans put forward by Ofgem today (Monday, May 16). The energy regulator said that it might insert two new reviews a year, one in January and another in July.

It would help pass on savings from a potential fall in gas prices to customers more rapidly, Ofgem said, and also protect under-pressure energy suppliers from being damaged by the cap. A consultation is open until June 14 2022. Ofgem would be looking to implement the reforms from October, meaning the first change under the new system would be made in January.

The energy price cap is currently at a record £1,971 per year for the average household and it is expected to jump sharply again in October. Ofgem has information for people who are struggling with their bills on its website.

In the rest of his twitter thread, Martin continued: “My breaking point was when hearing how instead of listening to calls to scrap its proposed market stabilization charge, it was making it harsher to really ‘stop the harmful effects of competition’ Ie staggeringly its aim’s to effectively STOP firms undercutting the price cap.

“Its logic was this’d prevent other firms needing to ‘exit the market’. For years I’ve been pushing it for better controls in who they allow to set up energy firms. Yet now its way to stop it to lock in advantage to higher charging incumbent former monopoly firms.

“Combine that with meeting industry’s demand for a new more frequent ‘every 3mth’ price cap change – Carefully calibrated for the first 3mths to include SIX months of wholesale prices (so the price factors in the highest wholesale rates in history) so firms don’t miss out.

“I finished the call by asking it to at least consider cutting standard charges, which huge rates stop people really saving by cutting energy use. I have had good meetings with Ofgem for years, so I’m sorry this blew up (they were calm I wasn’t)…

“Please accept that was (and this is) an emotional rant, not a considered piece. I pray when I do further analysis I have to apologise again as I’ve got it very wrong (if not I worry about dire consequences for consumers – we must do more to make things better for them)”

In a statement about the proposed changes, Ofgem chief executive Jonathan Brearley said the price cap would mean the price cap is more reflective of current market prices and any price falls would be delivered more quickly to consumers.

He said: “It would also help energy suppliers better predict how much energy they need to purchase for their customers, reducing the risk of further supplier failures, which ultimately pushes up costs for consumers. The last year has shown that we need to make changes to the price cap so that suppliers are better able to manage risks in these unprecedented market conditions.”

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