U.K.'s Martin Lewis criticizes energy pricing system as "labyrinthine," forecasting a £100 increase in utility bills
In a recent statement, consumer advocate Martin Lewis reiterated his long-standing campaign for a social tariff, a discounted energy rate for vulnerable households in the UK. The call comes as energy prices continue to rise, causing concern for many low-income households.
Lewis, the founder of MoneySavingExpert, criticised the current energy pricing system, labelling it as "broken". He argues that current measures like the Energy Price Guarantee and the Warm Home Discount are insufficient to protect low-income households from rising energy prices.
A social tariff, in the context of energy pricing, is a specially discounted rate on energy bills provided to people on low incomes or those receiving certain means-tested benefits. It aims to make energy more affordable for vulnerable households who struggle with high energy costs.
Martin Lewis's advocacy focuses on pushing the government and regulators to implement a mandatory social tariff. Such a scheme would provide targeted, predictable, and fair financial relief to vulnerable consumers facing high energy bills, replacing stop-gap or discretionary support methods with a guaranteed tariff that ensures affordability.
Predictions from major energy suppliers suggest a rise between 3.3% and 6.2%, which could translate to an increase of £60 to £100 for the average household. The energy price cap in the UK is expected to rise in April 2025.
Lewis stated that the real excess profits aren't made by energy retailers, but by unregulated energy generators. He has urged the government to introduce a social tariff to protect vulnerable consumers, arguing that the current system fails to protect the most at-risk households.
The debate over fair energy pricing is more urgent than ever due to further predicted energy price rises later in the year. The model of a social tariff has been used successfully in other sectors, such as broadband and water.
However, so far, no major changes have been made. Lewis has repeatedly called on the government and Ofgem to implement similar protections in the energy market, but to no avail. He warned that the increase is almost certain and has stated that the price cap isn't set by energy firms, but by the regulator.
The statement was made by Martin Lewis on February 5, 2025. The debate over fair pricing and consumer protection is intensifying as energy costs continue to rise, with Lewis urging the government to take action to protect vulnerable consumers.
- Martin Lewis suggests that a social tariff, a specially discounted energy rate for at-risk households, is necessary to replace the insufficient current measures like the Energy Price Guarantee and the Warm Home Discount.
- The energy price cap in the UK is expected to rise in April 2025, potentially increasing the average household's energy bill by £60 to £100, according to predictions from major energy suppliers.
- Lewis argues that it's the unregulated energy generators that make the real excess profits, not energy retailers, and urges the government to introduce a social tariff to protect vulnerable consumers.
- The model of a social tariff, providing targeted and predictable financial relief to vulnerable consumers, has been successful in other sectors like broadband and water.
- Lewis, in a statement made on February 5, 2025, reiterated his long-standing campaign for a social tariff, emphasizing that the increase in energy costs is almost certain and that the price cap is set by the regulator, not energy firms.
