Home Business News Ofgem faces legal action in the High Court for raising the price cap which will ‘devastate families’ as energy bills crisis is out of control

Ofgem faces legal action in the High Court for raising the price cap which will ‘devastate families’ as energy bills crisis is out of control

by LLB staff reporter
28th Aug 22 11:51 am

The Good law Project are set to sue Ofgem for raising the price cap which will “devastate families” and they have made the choice to “allow low income consumers and businesses to bear the brunt of this crisis.”

This comes as the price cap on energy bills is to rise by an eye watering 80% to £3,549 a year and could double next year.

Legal campaign group Good Law Project (GLP), Fuel Poverty Action, and the Highlands and Islands Affordable Homes Warmth Group are set to sue Ofgem, over their failure to mitigate the impact of rising energy bills on consumers.

This is likely to be the first legal action of its kind over the energy bills crisis, and others may join the action – including vulnerable individuals disproportionately impacted by Ofgem’s actions.

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Jo Maugham, Director of Good Law Project said, “The announcement will devastate families. Just who and what is Ofgem for? Do not be fooled.

“This is a choice. And the choice they’ve made is to let low-income consumers and small businesses bear the brunt of this crisis.

“We believe Ofgem can – and should do more.

“We intend to put the question before the High Court, and will ask for a fast-tracked timeline to reflect the urgency of this crisis.

The Ofgem announcement will push millions of people into poverty this winter and the average household bill up by £1,578 – an 80% increase from the current cap.

GLP will ask the High Court to ensure the regulator upholds its legal duties to, among other things, carry out an impact assessment before confirming the price cap increase, including assessing the disproportionate impact on elderly people, children and people with disabilities.

Good Law Project argues that Ofgem has the power to do more to protect vulnerable people and believes before raising the cap, Ofgem is legally required to “provide evidence it has carried out a proper impact assessment.”

They added, that Ofgem should “consider appropriate mitigation measures for the most vulnerable, including a lower social tariff.”

In July, the campaign group wrote to Ofgem, expressing concern about its decision-making.

They added, “We asked it to provide proof of its impact assessments.

“It failed to produce any such evidence.

“Last week GLP put the regulator on notice of formal legal action if it failed to uphold its duties.

“A formal response to the letter is expected today, but today’s announcement provides no indication that an impact assessment has been carried out.”

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