For years, consumers have been told the same thing: shop around, compare prices and switch energy suppliers if you can find a better deal.

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It is sensible advice. After all, competition is supposed to drive down prices, reward businesses offering better value and give consumers greater choice.

So imagine my disbelief at the news that Ofgem, the very regulator tasked with protecting energy consumers, is considering bringing back a scheme that could effectively punish competition.

Under the proposal, known as the Market Stabilisation Charge, when wholesale energy prices fall significantly, a supplier gaining a new customer could be required to compensate the supplier that the customer has left.

Yes, you read that correctly.

An energy company could receive compensation because its customer has found a better deal elsewhere.

Who ultimately pays the price? Consumers, of course.

The charge would be paid between energy suppliers, rather than appearing as a direct fee on your bill. But suppliers could factor that additional cost into the deals they offer, reducing the savings available to........

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