EDF backs Martin Lewis’s calls for cheaper energy | European Markets

Vitality provider EDF has voiced its assist for Martin Lewis’s calls to introduce cheaper power tariffs for struggling households, as households throughout the UK face rising power payments amid continued volatility in international gasoline costs.

The buyer champion and financial adviser, Martin Lewis, has long campaigned for reforms to guard susceptible customers from ever-increasing power prices. With predictions that Ofgem’s power price cap may rise by 3% to six% on April 1, 2025, bringing typical annual power payments to as a lot as £1,847, Mr Lewis has urged the Authorities and regulators to behave more decisively.

In a new post on social media platform X, Mr Lewis addressed issues about company greed within the power sector, emphasising that whereas power corporations are profit-driven entities, the duty for retaining costs inexpensive lies with regulators like Ofgem and the Authorities.

He argued that the present price cap system is basically flawed, because it permits corporations to charge the utmost quantity with out encouraging them to offer cheaper offers to customers. He additionally known as for a social tariff, which would offer focused assist to those that need it most.

Mr Lewis mentioned: “An energy firm’s job isn’t to keep our prices low; it’s to make money for their shareholders, a responsibility we shifted onto them during privatisation.

“As it stands, it’s the regulator Ofgem and Government whose job is to protect consumers from overly high prices. And that’s where the issues lie. The price cap isn’t set by firms, they aren’t increasing it, it’s set by the regulator. It’s a turgid system (that was pushed on the regulator by a past govt) and it’s allowed firms to price to the max of the cap without pushing them hard enough to offer cheaper deals.” (SIC)

He added: “We need a social tariff!”

EDF, one of the UK’s largest energy providers, backed Mr Lewis’s assessment, highlighting a 30% surge in wholesale gas and electricity prices since mid-December, driven by geopolitical uncertainties, including the Ukraine conflict and Russian gas sanctions.

Rich Hughes, director of Retail at EDF, expressed concern about the rising costs faced by consumers, particularly with household budgets already stretched thin. He said: “We’re working hard to keep our tariff prices as low as possible and recently launched a tracker tariff £100 below the cap.

“However, this exposure to ongoing volatility emphasises the need for a long-term, meaningful solution on affordability, and we agree with Martin Lewis that a social tariff is still urgently needed to help those who need it most.”

Social tariffs are designed to provide cheaper deals for low-income and vulnerable households. They are currently available for services such as broadband, mobile, and water bills.

The looming April rise in the price cap adds to a growing financial burden on households. New research from the Energy Insight Team at customer service specialist, ResQ found 41.1% of billpayers are concerned about falling into energy debt in the next 12 months – or already in it.

Gill Marchbank, CEO at ResQ, said: “The data is clear; many billpayers are worried or already struggling to pay their energy bills and expect to receive support and empathy from their providers. But what many are experiencing is a customer-compassion rift, with some providers failing to identify the personal impacts of poor customer care – as well as the commercial incentives behind providing the right support.