Over half a million energy customers to have direct debits reviewed as regulator slams firms for ‘unfair’ bill increases
Written by ABC AUDIO on July 13, 2022
HALF a million energy customers are to have their direct debits reviewed as the regulator slammed firms for ‘unfair’ bill increases.
The energy regulator, Ofgem, has ordered firms which increased direct debits by over 100% to urgently review bills.
The six worst firms, out of 17 suppliers, with the biggest flaws were Ecotricity, Good Energy, Green Energy UK and Utilita Energy, TruEnergy and UK Energy Incubator Hub (UKEIH).
Customers who have had direct debits hiked unfairly will be able to get repayments – and some may even get compensation, the regulator said.
Energy prices went up in April after the price cap was increased by £700, leaving many customers concerned about how they would pay their bills.
And Martin Lewis warned last month bills could rise by another £1,000 a year this winter.
If you’re concerned about bailiffs turning up on your front door over unpaid energy bills, we previously explained your rights.
Ofgem said that it had found “minor weaknesses” in the processes of Bulb, E.On, Octopus Energy, Outfox the Market, Ovo, Shell and Utility Warehouse.
While it found “no significant issues” with British Gas, EDF, Scottish Power and SO Energy.
Jonathan Brearley, Ofgem CEO, said: “We know how hard it is for energy customers at the moment so it’s crucial that the amount they pay each month in direct debits is right so they can manage their money.
“Suppliers must do all they can, especially during the current gas crisis, to support customers and to recognise the significant worry and concern increased direct debits can cause.”
Ofgem’s review found that over 7million customers on standard variable tariffs had direct debit bills increased between February and April 2022.
On average, bills went up by 62%, while 8% of households – around 500,000 customers – saw increases of more than 100%.
The regulator believes this is unfair and thinks that some firms processes for hiking bills were not as “robust” as they should be.
Will my direct debit be reviewed?
Ofgem has asked suppliers to review bills of customers who had direct debits increased by 100% or more between February 1 and April 30 2022.
It will adjust any errors and they must also consider a compensation payment if a customer has been left out of pocket.
— to www.thesun.co.uk
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