Some families who have been switched to a new supplier after their original energy company went bust are facing huge increases in their monthly direct debit payments.
Energy market regulator Ofgem has confirmed it is investigating the “troubling signs” that households are being overcharged to cover a rise in the price cap. The news comes after the February announcement that British homes can be charged up to 54% more for energy each year, when the price cap - the limit on the rates suppliers can charge - increased from £1,277 to £1,971.
Business secretary Kwasi Kwarteng has already written to regulator Ofgem to ensure suppliers are fulfilling their licence conditions, and has asked for stricter supervision of how customers’ direct debits and credit balances are being handled.
