London Daily

Focus on the big picture.
Friday, Mar 20, 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
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
×