How are the allegations of erecting energy in the form of disappointing ‘plans of Martin Lewis Slam

Ofgem has announced that there are major changes Energy is coming for tariff As soon as it recommends the providers to the next year, at least one deal is offered with at least one deal.

Energy regulator said that he wants to give to consumers More options on how they pay Flat-rate fees, with a plan to allow homes to pay costs as part of their unit rate by reducing the daily fixed amount.

This means that it is not possible that the bills will actually be reduced by changes, Ofgem has explainedSince the charge is moved from one part of the bill to another.

This proposal comes after a call from campaigners to scrap flat-rate standing charge, which is applied daily How much energy the customer uses.

Tim Jarvis, Director General of Market TogemSaid: “We have heard thousands Consumer It wanted to see a change in permanent fees and action.

“We have considered carefully how we can pay more options on how we can pay these fixed costs, although we have taken care to ensure that we do not make some customers worse.

But he said: “We cannot remove these allegations, we can only transfer the cost.

“These changes will give homes the option they have sought, but it is important that everyone believes in care that what is right for them because these tariffs are not likely to reduce them. Bill yourself.”

What is the criticism of plans?

Many campaigners say that new schemes have been recommended energy The regulator does not go far away. Response to declaration, Wealth expert Martin Lewis Said that they were “disappointing,” “firmly pledging” pushing back “.

“The main problem is that it does not seem that the price will be under the cap mechanism. This causes two major possible problems,” he told ITV. Good Morning Britain,

First, he said, there is no limit to what firms can charge, so they can reduce the standing charge, while what is necessary to compensate for it by increasing the unit rate.

Secondly, OFGEM did not carry forward its proposal to default its proposal to a low -income houses, whatever tariffs are best for them, which is unlikely that many will switch to this new tariff.

He criticized the potentially working change “smoothing” for the allegations standing in the “bureaucracy pillow”.

Gillian Cooper, director of energy in civil advice, said: “A plan to offer a low permanent fee – the fixed cost of being linked to the power supply – can provide more options to consumers, but will not reduce people’s bills.

“There is a real risk that people with high energy, like some older or disabled people, can pay more. If they choose one of these tariffs, it is important that people are supported to make the right choice when this option becomes more widely available than January.”

what happens next?

Ofgem is now starting a final consultation on plans, aimed at taking a decision by the end of the year, paving the way for the new tariff to be available to all across the UK by the end of January.

The energy regulator says that it dropped the earlier plans for tariffs with zero permanent fees and much more unit rates, as it could have wrongly affected consumers with high energy needs, such as those who rely in power for medical reasons.

It is also looking to start a minimum use on the new tariff to leave people with other homes or assets vacant for a long time, which do not benefit inconsistently.

Proposals come ahead of an increase of two percent in energy costs when the next price cap change is effective on 1 October, which will see the bill from £ 1,720 to £ 1,755 per year for a specific domestic growth.

Energy Consumers Minister Martin McCluski said: “Consumers should have freedom and option when choosing an energy tariff that works for them.

“This proposal will provide more tariffs on the market, which will give people more options to pay less permanent fees if it is in line with their requirements.”