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Rows erupt over energy bills increases

December 29, 2008 by admin  
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According to recent report a number of rows have erupted over direct debit payments on energy bills, with many concerned that people are being charged way over the odds on their direct debits by the energy giants, which is resulting in increased profits for the energy firms but leaving many consumers unable to keep on top of their monthly direct debits for their energy bills.

The report shows that in some cases the direct debits have been increased even on accounts where the accountholder has been in credit. Over one thousand customers are said to have complained about the practice that is being used by some of the major energy suppliers with regards to hiking up direct debits. Many people have been talked into paying by direct debit for their energy bills because the energy firms offer a small discount to customers that pay this way, but in many cases then set the direct debit very high.

Even the Prime Minister, Gordon Brown, has said that unless energy firms stop this scandal he will have to intervene.

One government official said: ‘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.’

The watchdog group for consumers, Consumer Focus, said that it was awaiting further clarification from energy firms with regards to this practice.

One official from the group 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.’

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