Direct debits on energy bills go up by double for many after price rise

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 consumer website, founded by Martin Lewis, said at least 30 per cent of customers with those companies, who were in credit and on a price-capped tariff, reported their direct debits increasing.

Across all companies, 25 per cent 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 price cap was increased by 54 per cent for the average household. The results were gathered from a survey carried out by MSE between April 26 and May 3.

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.

Mr Lewis said: “Fixed monthly direct debit is how up to 80 per cent of those in England, Scotland and Wales pay for energy bills. The theory is a good one: your annual cost is divided by 12 so you pay the same amount each month, smoothing out high-use winter and lower-use summer costs.

“Yet for months I’ve heard from people shocked to be told their direct debits are increasing two or threefold.”

Meanwhile, Keith Anderson, who leads ScottishPower, said the Government must take urgent action to help the poorest households in the country.