Ofgem has told a number of energy suppliers to take “immediate and urgent action” after finding a range of weaknesses or failings in the way they charge customers direct debits. The watchdog has now ordered every energy firm to review the accounts of all customers whose direct debit was increased by 100% or more between February and the end of April, involving some 500,000 households.
The regulator found five suppliers - Ecotricity, Good Energy, Green Energy UK, Utilita Energy and TruEnergy - had moderate to severe weaknesses ranging from inadequate processes to an overall lack of a structured approach to setting customer direct debits. UK Energy Incubator Hub (UKEIH), which has ceased trading, also had severe weaknesses and did not have a consistent and structured approach to setting direct debits, Ofgem said.
Out of a total of 17 large suppliers in the market, the majority were found to only have minor issues. Suppliers with no significant issues found were British Gas, EDF, ScottishPower and So Energy.
