London Daily

Focus on the big picture.
Thursday, Apr 09, 2026

Energy suppliers warned over direct debit hikes

Energy suppliers warned over direct debit hikes

The energy regulator has said it has seen "troubling signs" that suppliers may have been increasing direct debit payments by "more than is necessary".

Ofgem said it was concerned that firms may be directing customers to energy deals that aren't in their "best interest".

It comes as households face significant increases in their energy bills.

On 1 April, yearly bills increased by an average of £693 for about 18 million households on standard tariffs.

And some 4.5 million prepayment customers saw an average increase of £708 - from £1,309 to £2,017.

Energy experts have encouraged customers to take and submit meter readings as the changes take effect, in an attempt to save cash.

Jonathan Brearley, chief executive of Ofgem, said the regulator had received information from consumer groups and the public about "bad practices" by some suppliers.

"We are also seeing troubling signs that some companies are reacting to these changes by allowing levels of customer service to deteriorate," he wrote in a blog post on Ofgem's website.

He added that they were also concerned about "the way some vulnerable customers are being treated when they fall into difficulties".

'Substantial' fines


Mr Brearly said Ofgem planned a series of reviews and "stricter supervision" of energy firms over its concerns that the suppliers may have been increasing direct debit payments by "more than is necessary", or directing customers to tariffs that "may not be in their best interest".

The regulator said it would issue "substantial fines" to firms found failing to comply with the measures.

Energy bills have increased because the energy price cap - the maximum price suppliers in England, Wales and Scotland can charge households - is being raised.

Energy firms have been able to increase bills by 54% following the introduction of the new cap on 1 April.

The price cap is reviewed every six months, and prices are expected to rise yet again in October.

A report by the bank Investec has warned bills could reach £3,000 a year.

Experts encouraged people without smart meters to submit gas and electricity meter readings on 31 March to ensure that they had logged the use of less expensive rates for energy before the changes took place on 1 April.

If you can't submit your readings, you should take a photo with the meter reading and meter serial number both clearly visible to submit at a later date.

It's worth noting too that logging an extra reading to give a more accurate picture of your energy usage could see your bills go up if it is more than your company had forecast.

What help is available?


People struggling to afford energy bills can seek advice from charities such as Citizens Advice, Turn2Us or the StepChange debt charity.

All the big energy firms also have hardship funds that can offer assistance if someone is struggling to pay.

The government has said it will offer extra help worth a total of £350 via the council tax system in England too.

The warm house discount scheme will also be expanded to cover three million households. It offers low income households a one-off annual discount on their electricity bill, and was worth £140 in 2021-22.


In October customers in England, Scotland and Wales will receive a £200 rebate on their energy bills. They will have to repay this at £40 a year for five years, starting in April 2023.

The Northern Ireland energy market is separate, but the government has said £150m would be available to support households.

Newsletter

Related Articles

0:00
0:00
Close
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
UK Stocks Ease as Ceasefire Doubts in Middle East Weigh on Investor Confidence
UK Reassesses Cloud Strategy Amid Criticism Over Limited Support Measures
UK Calls for Full and Toll-Free Access Through Strait of Hormuz Amid Rising Tensions
Starmer Signals Strategic Shift for Britain Amid Escalating Iran-Linked Tensions
UK Issues Firm Warning to Russia Over Covert Underwater Military Activity
OpenAI Halts Stargate UK Project, Casting Uncertainty Over Britain’s AI Expansion Plans
Starmer Voices Frustration Over Global Pressures Driving UK Energy Costs Higher
UK Deploys Military Assets to Protect Undersea Cables From Suspected Russian Threat
Canada Aligns With US, UK and Australia as Europe Prepares Major Digital Border Overhaul
Meghan Markle’s Planned Australia Appearance Sparks Fresh Speculation
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
UK to Partner with Shipping Industry to Rebuild Confidence in Strait of Hormuz, Cooper Says
UK Interest Rate Expectations Ease Following US–Iran Ceasefire Agreement
Starmer Signals Major Effort Needed to Fully Reopen Strait of Hormuz During Gulf Visit
UK Fuel Prices Face Ongoing Volatility Amid Global Pressures and Domestic Factors
Kanye West’s Planned Italy Festival Appearance Draws Debate After UK Entry Ban
Smuggling Routes Shift Toward Belgium as Migrant Crossings to UK Evolve
Ceasefire Offers Potential Relief for UK Fuel and Food Prices Amid Ongoing Uncertainty
Iran Conflict Raises Questions Over UK’s Global Influence and Military Preparedness
Senator McConnell Visits Kentucky to Highlight Federal Investment in Local Projects
Kanye West Barred from Entering UK as Legal Grounds Come into Focus
UK Denies Visa to Kanye West After Sponsors Withdraw from Wireless Festival
Trump-Era Forest Service Restructuring Leads to Closure of UK Lab Focused on Kentucky Woodland Health
Foreign Students in the UK Describe Harsh Living Conditions and Financial Pressures
Reform UK Proposes Visa Restrictions on Nations Pursuing Reparations Claims
Public Reaction Divides Over UK Decision to Bar Kanye West
Calls Grow for UK to Review US Base Access Following Concerns Over Escalating Rhetoric
UK Indicates It Will Not Permit Use of Its Bases for Potential US Strikes on Iran’s Energy Infrastructure
UK Prime Minister Defends Decision to Bar Kanye West, Questions Festival Booking
UK Accelerates Efforts to Harmonise Medical Technology Rules with United States
Wireless Festival Cancelled After Kanye West Denied Entry to the United Kingdom
Australia’s most decorated living soldier was arrested at Sydney Airport and charged with five counts of war-crime murder for the killing of unarmed Afghan civilians
The CIA’s Secret Technology That Can Find You by Your Heartbeat Successfully Locates Downed Airman
Operation Europe: Trump Deploys Vance to Hungary to Save the EU
King Charles Faces Criticism From Some UK Christians Over Absence of Easter Message
Former UK Defence Secretary Raises Concerns Over Ability to Counter Iran Missile Threat
UK Signals Non-Involvement in Iran Conflict as Trump Reasserts Firm Deterrence Stance
US and UK Strengthen Medical Device Cooperation Following Tariff Removal
Trump Backs Steve Hilton for California Governor, Highlighting Reform Agenda
UK Seeks Closer Ties With Anthropic as AI Policy Divergence Emerges Across Atlantic
Experts Warn of Evolving Extremism After Teens Arrested in UK Ambulance Arson Case
UK Convenes Talks to Safeguard Shipping Through Strait of Hormuz After Conflict Escalation
Trump Highlights Strong Leadership in Critique of UK Stance on Iran
UK Authorities Review Kanye West’s Entry Status Following Festival Backlash
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
×