‘This all smells wrong to me’
Outrage as energy direct debit bills double for 1 in 4
WITH households already buckling under the cost of living crisis, soaring direct debits for energy bills is the last thing they need.
But one in four customers claim theirs have at least doubled, despite being on a price cap and in credit.
A survey by MoneySavingExpert.com found firms including British Gas were among those users complained about.
Watchdog Ofgem, which allowed suppliers to increase prices by an average of 54 per cent at the start of April, has vowed to look into the claims.
MoneySavingExpert.com founder Martin Lewis said: “That smells wrong to me. They should only be seeing rises in line with the price cap, 45 per cent to 65 per cent.
“For months I’ve heard from people shocked to be told their direct debits are increasing two or threefold.”
Questions were already being asked about whether some suppliers had jacked up direct debits. Last month, Ofgem chief executive Jonathan Brearley said there were “troubling signs” of payments being hiked “by more than is necessary”.
British Gas customers made the most number of complaints about direct debits rising. The average increase was 72 per cent, with a third saying theirs had at least doubled.
The average rise for Octopus customers was said to be 80 per cent, with 32 per cent claiming payments had more than doubled.
For Shell Energy, 30 per cent said direct debit payouts had doubled, with the average increase being 70 per cent. And in the survey, conducted between April 26 and May 3, 27 per cent of E.on users said theirs had gone up by 100 per cent or more, with the average at 71 per cent. Lewis urged customers to challenge their payments and if suppliers refuse to lower them then complain to the Energy Ombudsman.
He added: “Under firms’ licence conditions, you have a right to a fair direct debit.” His website has passed the survey findings to Ofgem and ministers.
The watchdog said: “Protecting energy customers is our top priority. We wrote to suppliers to alert them that we are commissioning reviews to ensure, among other things, they are handling direct debits fairly.
“Once Money Saving Expert provide us with this data, we will examine it as part of this crucial review.”
British Gas insisted it did not recognise the figures but said it was hard to comment without examples. Octopus energy said: “The survey data is wrong. For example, they claim 32 per cent of our customers saw direct debits double. The reality is it’s 15 per cent and therefore less than half of that.”
Shell Energy said the rises in direct debit payments “can in part be explained by the influx of accurate meter reads which changes the usage on which we make the calculations”.
ScottishPower chief Keith Anderson said energy bills are likely to go up by nearly another £1000 for millions of UK households next winter.
He said: “Given what’s going to happen in October, urgent action is required to put in place a mechanism to support customers through this period.”
“You require a sum of about £1000 to start bringing bills back closer not to where they used to be but closer to where it’s realistic to expect people to be able to pay them.”
The rises should be in line with price cap, 45% to 65% MARTIN LEWIS ON THE SOARING DIRECT DEBITS