A pressure group has said it plans to sue Ofgem over its 80% price hike, which it says will “destroy families” this winter. Ofgem increased the energy price cap on Friday, taking the average household spend to £3,549 a year. Director of The Good Law Project, Jolyon Maugham, said their legal action was the “first of its kind” against the energy regulator. “Don’t be fooled. That’s a choice,” Mr. Maugham said. “And the choice they have made is to let low-income consumers and small businesses bear the brunt of this crisis,” the QC said. “We believe Ofgem can and should do more. We intend to take the question before the Supreme Court and will request an expedited timeline that reflects the urgency of this crisis.” The Good Law Project said it would ask the High Court “to ensure that the regulator complies with its legal duties, including carrying out an impact assessment that includes an assessment of the disproportionate impact on older people, children and people with disabilities, before confirm the increase in the price ceiling’. Food or heating? A choice many families will have to make this winter (Image: Getty) The pressure group said that before Ofgem raised the cap, it believed the regulator was legally required to “provide evidence that it carried out a proper impact assessment” and should “consider appropriate mitigation measures for the most vulnerable, including a lower social tariff ». The price cap does not set a limit on what energy companies can charge households, but sets a maximum price per unit of gas and electricity. It comes as Boris Johnson gave a very optimistic view of Britain’s ability to see out the cost of living crisis. In an op-ed for Mail+, the outgoing Prime Minister acknowledged that the coming months will be tough – “perhaps very tough” – as the “amazing” bills take their toll.
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However, he predicted a “remarkable” recovery and a “golden” future for the country as he predicted the UK would emerge “stronger and more prosperous (on the other side). Pat McFadden, shadow chief secretary to the Treasury, suggested Johnson was out of touch with people’s experiences and repeated Labour’s proposal to freeze energy bills for six months. He told Sky News: “I think the Prime Minister’s article today shows how little he understands the shock wave sent to households across the country by Ofgem’s announcement on Friday.” Contact our news team by emailing us at [email protected] For more stories like this, check out our news page.
