The Courier & Advertiser (Fife Edition)
Energy direct debits ‘double’
Britons who are with British Gas, Octopus Energy and Shell Energy said their direct debits have doubled since the price rise, despite the price cap being half that, according to Money Saving Expert (MSE).
The website, founded by Martin Lewis, said at least 30% of customers with those companies, who were in credit and on a pricecapped tariff, reported their direct debits increasing.
Across all companies, 25% of customers in this situation said their direct debits had doubled or more.
Energy prices have rocketed in the last year, and last month the energy price cap was increased by 54% for the average household.
The results were gathered from a survey carried out by MSE between April 26 and May 3, with 41,000 responses.
It added that the survey was self-selecting, so some people may have responded more frequently.
However, it said that even if the proportions are “skewed”, the results show a material number of people reporting their direct debits doubling.
The survey also found that those coming off fixed deals saw their direct debits rise the most.
MSE said this is to be expected as they were likely to have been on the cheapest tariffs and are moving to the price cap.
It will be reporting its results to regulator Ofgem, the Department for Business, Energy & Industrial Strategy and the Business Committee of the House of Commons.
Mr Lewis said: “Those coming off cheap fixes, moving to expensive fixes, or who are in energy debt would expect to see their direct debit rise by more than the already hideous 54% increase in the energy price cap.
“So to test what’s really happening, we analysed responses only from those in credit who were on, and remain on, a price-capped tariff, as they should only be seeing rises in line with the price cap, roughly 45% to 65%.
“Yet even then, on average many report higher rises, and a quarter say they were told to pay double what they were paying previously. That smells wrong to me.”
In response, Octopus Energy told MSE its own analysis of customer account data showed only 0.84% of those in credit
who had been on its standard tariff for over three months have seen their monthly payments double, with a median increase of 59%.
Meanwhile, British Gas told the website the higherthan-average increase could be down to the fact it offered an option for customers to freeze their direct debits at their existing levels last winter.
An Ofgem spokesperson said the regulator will examine the data provided by MSE.