Anti-poverty groups threaten legal action against Ofgem

If the energy regulator Ofgem fails to protect vulnerable customers from soaring energy bills, it will be threatened with legal action.

Anti-poverty groups are urging the Good Law Project to make sure people can cope with bills, which are expected to reach upwards of 4,000 a year.

The energy price cap is expected to be lifted to more than 3,500 in October, with many energy producers like BP and Shell likely to rake in thousands.

According to a poll by Ipsos, 66 per cent of people think the Government is not providing enough help as rising energy bills surge back into the headlines, while a third think current measures are about right or too much.

After a Opinium poll from 38 Degrees, 86 per cent of the public and 86 per cent of Tory voters supported Labour's plan to freeze energy bills.

The GLP has sent a formal pre-action letter to Ofgem, along with Fuel Poverty Action and the Chair of the Highlands Islands Housing Associations Affordable Warmth Group.

The letter has a pledge to protect vulnerable groups from rising bills ahead of an increase to the energy price cap due August 26th.

Jo Maugham, the director of the GLP, said that Ofgem has the power to protect vulnerable people from the devastating increases in energy costs and they think they should use them.

They don't seem to be planning any steps to protect vulnerable groups after failing to assess the risks. We hope we are wrong and that Ofgem is doing all this behind the scenes. We don t want to wait for their 26 August announcement to find out we put them on notice that if they don't comply with their legal duties before announcing the next increase, we ll be ready to challenge it straight away. According to the GLP, Ofgem can impose a social tariff for vulnerable customers, but so far hasn't announced any plans to do this. It accused Ofgem of failing its legal duty in not doing so.

This comes as energy companies have made record profits despite half of the UK population being threatened by fuel poverty in October 2022.

Ofgem admitted earlier in the month that there is a risk that the price cap at this level could lead to some suppliers being in a relatively healthy cash position. An Ofgem spokeswoman said that its priority is to protect consumers and that people are currently under huge pressure as bills continue to rise.

We will work closely with the government, consumer groups and energy companies on what additional support can be provided to help with these higher prices.

We will respond in due course if Ofgem received a letter from the Good Law Project.