Claims that energy firms are ripping off consumers
Further claims have been made recently that the UK’s energy giants are continuing to rip off consumers, and as many households struggle to keep up with bills and payments on their homes, he energy giants are said to be sitting on billions of pounds worth of consumers many. The claims come amidst controversy that British Gas, one of the UK’s major suppliers, has been increasing the direct debits of customers by 50% or more over the winter, even in cases where the customer’s account is in credit.
Over the past week or two close to one thousand angry energy customers have contacted a national newspaper to complain about the process. It seems that the energy companies that are taking increased direct debits from customers are raising extra cash over the winter period by taking advantage of the fact that consumers will use more energy over the colder months. Many customers have said that in the current financial climate they cannot afford to have their bills hiked up by such a large amount each month.
Many energy customers have decided to pay by direct debit for a number of reasons, and one reason is that energy firms offer a slight discount to those that pay by direct debit. Another is that direct debits enable the customer to spread payments on bills over twelve months. However, in many cases the direct debit is set far too high by the energy company, and some consumers are paying a fortune each month even though their accounts are actually showing hundreds of pounds worth of credit.
One government official said that the scam had to be stopped, and he added: ‘People should clearly be given a choice about this. Utility companies should be adjusting payment plans quickly to ensure large balances do not build up. If there was evidence that they are not doing this, it is something we may decide to look at.’
A spokesperson from the watchdog group Consumer Focus said: ‘Unless an account has been mismanaged or there has been a significant change in energy use, we would not expect to see increases in direct-debit payments approaching 100%. Increases on this scale would not be in line with recent price increases and should be challenged, particularly where the account is in credit and no debt needs to be recovered.’
One Lib Dem official said: ‘There is simply no excuse for this grossly unfair practice. Ministers must recognise this as the act of naked greed that it is and compel the energy companies to help their most vulnerable customers.’
Tags: energy firms, cash, consumer, government official, Direct debitA Tory MP added: ‘There is a real temptation for the companies to boost their cash flow at a time of economic recession. This money should be in the bank accounts of hard-pressed families, not boosting the profits of the utility firms.’
