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Martin Lewis calls for crackdown on energy suppliers ‘doubling’ direct debits amid cost of living crisis
Lewis claims the companies are doing it to improve their cash flow situation at the expense of their customers
Martin Lewis has called for a crackdown on energy suppliers ‘doubling’ direct debits, even for those in credit.
The MoneySavingExpert founder revealed that a number of companies are hiking household direct debits disproportionately to the price cap increase, even if their accounts are in credit.
Lewis has now called upon regulator Ofgem to ‘crack down’ on the practice, saying it is ‘not mathematically sound’ and a ‘breach of license conditions’.
He told MPs in a video statement: “There is no reason to double someone’s direct debit when they’re in credit and the price cap is going up 54%.
“That’s not mathematically sound and it’s a breach of licence conditions. I have been very concerned that a number of companies are doing it to improve their cash flow situation at the expense of their customers and I would like to see the regulator crack down on that quite substantially.”
He then pointed out: “It’s important to remember that there is no competition in the market any more. This is not a market… No-one can switch.”
Lewis went on to explain that companies are seeing this price change as an ‘opportunity to crystallise a change in payments’, saying that consumers need to be ‘wary’.
He said: “The amount of playing fast and loose that seems to be going on is huge right now. We need to crack down and we need to be much tougher with firms that do this.”
Lewis has previously offered tips on how to keep energy bills as low as possible amid the cost of living crisis. They are as follows:
- Consider getting a fixed tariff that is no more than 40% above the price cap
- Improve insulation in your home
- Turn the thermostat and radiators down
- Think about budgeting everyday costs
- Use your smart meter and take regular meter readings
- Speak to your energy provider now if you are struggling to pay your bills