Ofgem have made over 20 incremental increases to the price cap during the energy crisis, outside of the wholesale energy cost increases. These are decisions Ofgem have made to further increase inidividual elements of the cap. They consult on every decision, but because the public aren't aware of these consultations, the energy suppliers often get their own way! So we're grouping together to get involved with the consultations and let Ofgem know we won't stand for further increases! 

We started by fighting the broken Ofgem price cap formula (described below) in September 2022. Rather than trying to reduce energy supplier profits during a crisis, Ofgem have now implemented a new formula that INCREASES energy supplier profits from October 2023! (https://www.ofgem.gov.uk/publications/amending-price-cap-methodology-earnings-interest-and-tax-ebit-allowance-decision#:~:text=Decision%20for&text=This%20decision%20confirms%20our%20proposal,with%20the%20overall%20cap%20level) 

This petition will continue to fight Ofgem on increasing energy costs for consumers. We work together as a group, we respond to each and every consultation that plans to increase the price cap. Please, sign the petition and go to the link below to get subscribe to our Youtube channel, where we explain each consultation: https://www.youtube.com/channel/UC-SXdlBzFuu45KhWVnRp5HA

The reason this petition was originally created:

The Ofgem Price Cap formula calculates EBIT (also known as profit) as 1.9% of the other costs combined. This means that as the energy crisis worsens and costs increase, energy suppliers actually get MORE profit, hence why we're seeing energy suppliers announcing record profit levels during the crisis.

Similarly, of Ofgem Price Cap applies a "headroom allowance", which is just a little extra cost on top of the cap to account for anything Ofgem may have predicted incorrectly. This allowance is also a percentage of other costs, 1.46%. In 2018, this was £10 per household, today it is £43 per household, by April 2023 it'll be £55 per household. In 2018, only 14 million households were on standard variable tariffs (the tariffs the price cap applies to), so there was £140million in "headroom" in the industry. Today, with 25 million homes on standard variable tariffs and the headroom being £43, there is over £1billion of headroom in the market! This is just extra money being charged to households, not assigned for any specific costs, which if it is unused will just go as extra profits. 

As the energy crisis worsens for the public, things actually gets better for energy suppliers. There is no competition left in the market, no energy suppliers are offering cheaper fixed rate energy deals and no energy suppliers are taking on new customers, because the domestic energy supply market is currently a cash cow for the suppliers. There is also no incentive for suppliers to bring their costs down, to improve efficiencies or the make any improvements to their customer services.

We are petitioning for Headroom Allowance to be removed entirely, for the EBIT Allowance to be recalculated so that it protects customers from excessive costs during a crisis (as well as stopping suppliers from profiteering from our struggles) and for the UK Government to remove VAT from domestic energy bills during an energy crisis. 

These figures won't solve the problem entirely, but it's a step in the right direction, a saving of almost £300 per year for every household, and it stops energy companies from posting record profit levels during a time when people are deciding between heating and eating. 

For a more detailed explanation of the points above, read this article I wrote https://www.over50smoney.com/Home+Bills/Energy/351__Broken+Ofgem+Price+Cap+Formula+and+How+It+Will+Cost+The+UK+Government+Billions