Energy firms warned over hiking direct debits

The authorities has warned vigor firms not to hike customers' nonstop debit payments erstwhile households are making "huge efforts" to chopped usage.

The concern caput has written to suppliers asking them to guarantee bills amusement what homes are really using, arsenic opposed to overcharging connected estimates.

Grant Shapps said helium was acrophobic by reports nonstop debits are rising arsenic radical instrumentality steps to chopped vigor bills.

Regulator Ofgem has been asked to look astatine making billing "more responsive".

Last week, The Times reported that immoderate customers, including those connected a fixed-rate tariff, had seen their nonstop debit payments soar contempt reducing however overmuch vigor they use.

Energy prices person been rising owed successful portion to sanctions imposed against Russia, a large lipid and state producer, pursuing its penetration of Ukraine.

Ofgem has lifted the terms headdress connected state and energy bills. While assistance from the authorities done its Energy Price Guarantee has constricted the summation to households, a emblematic yearly measure of £2,500 is astir treble what customers were paying past winter.

In his missive to the main executives of UK vigor companies, Mr Shapps said helium was "disturbed... that immoderate consumers are saying their nonstop debits are going up erstwhile they are making immense efforts to trim their usage to prevention wealth astatine a clip erstwhile household incomes are squeezed".

He told vigor firms: "I americium funny to recognize however you mean to guarantee that your nonstop debit strategy does not over-estimate charging."

"I americium precise keen that each suppliers find a mode to marque their systems much responsive to these affirmative changes successful user behaviour," Mr Shappss said.

Earlier this year, Ofgem conducted a reappraisal into however vigor firms were charging customers by nonstop debit pursuing complaints astir soaring charges and recognition balances.

About 500,000 households had seen their payments double, according to Ofgem, contempt prices rising by 54%.

At the time, the regulator said it had asked firms to analyse whether specified ample increases were justified.

BBC News has contacted Ofgem for remark connected whether much enactment needs to beryllium taken.

Household vigor costs are acceptable to emergence again adjacent year.

Last week, Ofgem announced different summation successful the terms headdress which would person taken the emblematic yearly vigor measure to £4,299 from January.

While the government's Energy Price Guarantee volition continue, a emblematic yearly measure volition summation to £3,000 from April.

Some groups crossed the UK, including those connected means-tested benefits, pensioners and immoderate radical connected definite disablement benefits volition person currency payments.