Energy suppliers have been warned about overcharging customers who pay bills via direct debit, with a letter from business secretary Grant Shapps asking companies to consider people’s efforts to cut usage.
Shapps, in an open letter wrote: “I was disturbed to read media reports that some consumers are saying their direct debits are going up when they are making huge efforts to reduce their usage to save money.”
With many people trying to cut down their energy usage, amid soaring costs caused by the Russian invasion of Ukraine, government worries stem from the fact that companies sometimes take direct debit payments based on customers previous consumption, leading to overcharging.
“I am very keen that all suppliers find a way to make their systems more responsive to these positive changes in consumer behaviour and have asked Ofgem to report to me on how this can be achieved,” Shapps continued.
He added: “I am interested to understand how you intend to ensure that your Direct Debit system does not over-estimate charging.”
Energy suppliers have recently been accused of not doing enough to help vulnerable customers, with a report from energy watchdog Ofgem finding many people were unable to contact their suppliers for support and to take metre readings in cases where they could not themselves.
Centrica PLC (LSE:CNA) owned British Gas, Shell PLC (LSE:SHEL, NYSE:SHEL), Scottish Power, Octopus Energy and EDF were among companies found to be at fault in the report.