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Daily Record
Daily Record
National
Taylor Murray

Ofgem reports that 500,000 customers saw their direct debits with energy firms double

Regulator Ofgem has told a number of energy suppliers to take immediate and urgent action over some customers' direct debits.

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Ofgem has reported that around 500,000 customers have seen their direct debits double.

Although they have not found “evidence of unjustifiably high direct debits" they are going to ask suppliers to review these.

Five of the 17 largest suppliers in the energy market have been found to have ‘moderate or severe’ weaknesses.

The 17 companies were placed into a three-category system by Ofgem, with category one for companies that had no issues.

Category two is for companies that were found to have minor weaknesses and category three is for companies deemed to have moderate to severe weaknesses.

The companies that have been asked to take immediate action are: Ecotricity, Good Energy, Green Energy UK and Utilita Energy.

Scottish Gas was deemed to be in category one, which saw no issues with how they charge they their customers

Jonathan Brearley, Ofgem CEO, said: “We know how hard it is for energy customers at the moment so it’s crucial that the amount they pay each month in direct debits is right so they can manage their money.

“Suppliers must do all they can, especially during the current gas crisis, to support customers and to recognise the significant worry and concern increased direct debits can cause.”

Ofgem takes hard stance against energy companies direct debits (Nick Ansell/PA Wire)

The UK energy regulator has made suggestions to those companies in category three as to how they can help consumers out and review their direct debits with customers to ensure that they are correct or they will take “enforcement action” against more suppliers.

These include actions such as fines, enforcement or the banning of acquiring new customers.

“We know there is some excellent service out there, but we want to make sure that it’s consistent and standard across the board. It’s clear from today’s findings on direct debits that there are areas of the market where customers are simply not getting the service they need and rightly expect in these very difficult times.

“Today’s findings show that with the urgent changes we are now expecting, the current system will be much fairer for consumers. Bringing down the price of gas is not in Ofgem’s control. However, we will do all we can to have a fair system and ensure suppliers look after their customers," added Mr Brearley.

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