Energy companies are increasing customers’ direct debits disproportionately to the price cap increase and the regulator should “crack down” on the wide scale practice, MPs have been told. Money Saving Expert founder Martin Lewis warned about “worrying issues” over energy companies increasing customers’ direct debits disproportionately to April’s 54% increase to Ofgem’s price cap, even for those in credit.
He told the Business, Energy and Industrial Strategy (BEIS) Committee: “There is no reason to double someone’s direct debit when they’re in credit and the price cap is going up 54%. That’s not mathematically sound and it’s a breach of licence conditions. I have been very concerned that a number of companies are doing it to improve their cash flow situation at the expense of their customers and I would like to see the regulator crack down on that quite substantially.”
He added: “It’s important to remember that there is no competition in the market any more. This is not a market … no-one can switch.” Asked to give examples of firms doing this, Mr Lewis replied: “Anyone with an energy licence. This is a market-wide system.
