It’s Time to Make Some Noise - Let’s Contact Ofgem

Hi everyone,

It’s time for us to take this to the next step and start getting Ofgem’s attention. I’d like to ask all of you to send a complaint email to Ofgem. If they receive thousands of complaints on the same day with the same message, they’ll have to pay attention. 

Please send an email to feedback@ofgem.gov.uk

Please add my email address as a CC richard@over50smoney.com

Please set the subject to “Complaint: Change the Price Cap Formula”

Then copy and paste the message below into the text of your email:

Good afternoon, 

I’ve signed a petition for Ofgem to review and change the price cap formula. The petition has now reached 160,000 signatures and is still growing. You can view the petition here  https://chng.it/pyvwJZ8R

Our complaint about the calculation of the price cap primarily rests on the following two points:

• EBIT (profit) – setting EBIT as a percentage of costs means energy suppliers are being rewarded for having higher costs and, with the complete absence of fixed rate tariffs available, they are incentivised to keep their costs rising rather than trying to reduce costs
• Headroom – Headroom allowance is also set as a percentage of costs, this is providing excessive and unnecessary headroom in the market, which will obviously be unused and therefore just account for more profits for the suppliers.

With the government’s Energy Price Guarantee and your flawed price cap formula, we’ll see billions of pounds of public money being spent on record-breaking profit levels for private energy companies. Ofgem’s job is to protect consumers, not to allow suppliers to profiteer from public money. 

My specific requests and questions:

1. Change the EBIT calculation from 1.9% of other costs to a fixed £10 per household
2. Change the Headroom Allowance calculation from 1.46% of other costs to a fixed £10 per household
3. How do you plan to reintroduce competition to the market and force domestic energy suppliers to once again offer cheaper fixed-rate tariffs? 

As the Energy Price Guarantee is already in effect, I would like to stress the importance of reviewing the price cap formula QUICKLY. The longer you wait, the more public money is being wasted on excessive supplier profit levels. 

I look forward to your response. 

Kind regards

[enter your name]

Thank you to everyone that does this, please do CC me in so I can keep track of how many complaints we’re able to raise to Ofgem. Additionally, please keep sharing this petition on Twitter and Facebook and with anyone you know that would agree with how illogical Ofgem’s Price Cap formula is. The more support we can get, the better. 

Thanks all,

Richard Winstone