Ofgem sued for 80% increase to the energy price cap

One pressure group stated it will sue Ofgem for its 80% price-cap increase, which it claims will ‘devastate families’ in winter.

Ofgem increased the energy price cap Friday to £3,549 per household.

Jolyon Maugham (Director of The Good Law Project) said that their legal action against the regulator was the ‘first’ of its kind.

QC stated that they made the decision to allow low-income consumers and small businesses to bear the brunt. We believe Ofgem should and can do more. We will be asking the High Court for a faster timeline to address the crisis’ urgency.

The Good Law Project stated that it would ask the High Court to ensure the regulator upholds their legal duties to, among others, carry out an impact assessment that includes assessing the disproportionate effect on elderly people, children, and people with disabilities before confirming the price cap increases.”

According to the pressure group, Ofgem had raised the cap before it was lifted. It is believed that the regulator was legally required by law to show evidence of an impact assessment and to consider appropriate mitigation measures for the most vulnerable. This included a lower tariff.

The price cap doesn’t limit the number of energy companies can charge households but it does set a maximum price per unit for gas and electricity.

The outgoing Prime Minister Boris Johnson acknowledged that the next few months would be challenging. He also said that bills and other expenses will continue to take their toll, but we have the ability to see through the cost-of-living crisis.

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