Claims energy supplies are inflating customers' direct debits to ease cashflow difficulties are to be investigated. Business secretary Kwasi Kwarteng said companies had three weeks to respond to allegations about 'unjustified' direct debit increases.
The Times reports that energy suppliers could face 'substantial fines' as an investigation begins into claims customers are being ripped off. Energy regulator Ofgem has warned suppliers that customer credits cannot be used to “prop up their finances”.
There have been anecdotal reports of suppliers inflating direct debits beyond what customers are using without justifying the increase and either ignoring or rejecting appeals for the payments to be reviewed, the paper reports.
