Energy: Billing
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential impact of energy suppliers requesting increases to Direct Debit payments from customers who are already in credit on those customers.
Answered by Martin McCluskey
The level of customer credit balances held by energy suppliers is a matter for Ofgem, as the independent regulator.
Energy suppliers use credit balances as a way to smooth customer direct debit payments over a year, accounting for seasonal variations in usage. If a customer has concerns about their direct debit or the level of credit balance they should contact their energy supplier.
Under the terms of Ofgem’s Standard Licence Conditions, customers may challenge increased direct debit payment amounts with their supplier and ask the supplier to justify how amounts have been calculated. Suppliers must explain clearly how they reached the figure they want to charge and give the meter readings used.
Customers can ask their supplier to lower monthly direct debit payments to reflect the energy use more accurately and if a customer is concerned about the size of a credit balance on their energy account, they can ask their supplier to refund it.
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