The Good Law Project said that before raising the cap, Ofgem is legally required to provide evidence it has carried out a proper impact assessment and consider appropriate mitigation measures for the most vulnerable, including a lower social tariff.
The Good Law Project, along with Fuel Poverty Action and the Highlands & Islands Housing Associations Affordable Warmth Group are planning to sue the energy industry watchdog Ofgem, over its failure to mitigate the impact of rising energy bills on consumers.
The news comes after Ofgem’s announcement last week that it was raising the price cap to an eye-watering £3,549 a year.
Jo Maugham, Director of Good Law Project, said: “The announcement today 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 legal challenge rests on proof of Ofgem’s impact assessments and its alleged failure to provide them.
The Good Law Project said that before raising the cap, Ofgem is legally required to provide evidence it has carried out a proper impact assessment and consider appropriate mitigation measures for the most vulnerable, including a lower social tariff.
The legal campaign group says that it wrote to Ofgem in July, asking for proof of its impact assessments, but that none was forthcoming.
It said that Ofgem’s latest announcement on raising the price cap, showed no indication that an impact assessment had been carried out and that it planned to put the question before the High Court.
Basit Mahmood is editor of Left Foot Forward
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