Uswitch comments on concerns that energy providers are setting direct debits too high

Richard Neudegg, director of regulation at Uswitch.com, said: “Many customers who have seen their direct debits rocket this year have wondered if the rises accurately reflect their increased energy use.

“In November, we found that 18 million households had more than £4 billion in credit with their supplier.[1]

“It’s important that your account has built up enough credit to get you through the coldest months of the year, so it’s possible that your payments need to stay high even if you are in the black right now.

“However, suppliers should be regularly assessing your direct debit to check it’s fair and have a responsibility to make sure that payments accurately reflect customers’ energy use. 

“In the past year Ofgem has pointed out a number of inadequate processes of some suppliers. Given how challenging energy costs are for households up and down the country, it’s right there is a really close focus on whether payments are working fairly.

"If you think your direct debit isn't right or feel you have too much credit in your account, contact your supplier and ask them to explain the reasoning. If you’re unhappy with the answer, you should request a change. If your supplier still won’t do this, you can consider making a formal complaint to them or escalating to the Energy Ombudsman.

“It is more important than ever to have your energy account details up to date and you should provide regular meter readings if you don't have a smart meter.”

ENDS

[1] Uswitch: Energy debt gap widens: Households in energy credit see balances double while those in debt owe more