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Daily Mirror
Daily Mirror
Business
Ruby Flanagan

Martin Lewis slams 'outdated' energy rules that could leave customers paying more

Martin Lewis has written to Ofgem calling out current energy market rules which could see customers forced to pay more.

The finance guru called on Ofgem to force energy suppliers to publish details of every single energy tariff they offer - or issue guidance to suppliers urging them to do so voluntarily.

Martin said this would allow for independent scrutiny of whether they are good deals or not.

Currently, energy providers do not need to share the tariffs they offer to existing customers.

The founder of MoneySavingExpert.com has written to Ogfem boss Jonathan Brearley saying that it is "near-impossible" for consumer advice organisations to provide guidance over the "opaque" deals that suppliers offer customers.

Martin explained that he had brought this issue to light several months ago.

However, as energy suppliers are now bringing back "short-lived competitive fixed deals" he says it "urgently" needs to be addressed.

The MSE founder said the issue was “yet another symptom of a broken energy market, with outdated regulation, that desperately needs an overhaul”.

He also accused Ofgem of being far "too slow" to address the issue, which he said he had raised with it several times in recent months.

Fixed rate deals disappeared from the energy market last year as the price of energy started to rise with Ofgem's price cap.

The vast majority of households are currently on standard variable tariffs, which are set by the Goverment's Energy Price Guarantee (EPG).

The EPG means the typical household pays £2,500 a year for energy - although in reality, there is no total cap on how much you can pay, as it all depends on your usage.

From July the EPG will come to an end as Ofgem price cap will fall below it at £2,074.

A handful of suppliers are now offering fixed-rate deals again which are generally only made available to existing customers.

As different regions of the UK have different unit rates and standing charges and suppliers often did not disclose this information, Martin said it was "impossible" to check if these deals could be better for customers.

He explained that his consumer guidance website, Money Saving Expert had to “rely on crowdsourcing from consumers willing to forward bills”.

He added: "It also leaves a problem later on down the road.

"As these deals aren’t listed on comparison sites because the information isn’t available, when consumers who get them then come to the end of their tariffs, they won’t be able to do a comparison – even if open-market deals have returned by then – as there won’t be data on the tariff they are on."

“People are now having to make the decision of whether to fix, which is really quite complicated in a moving market, with none of the old guidance that was in place for years.”

“This is not an issue that can wait. Market confusion over energy tariffs is rife and set to explode."

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