Ofgem urged to fine firms over ‘unjustified’ charges

The Business Secretary wrote to Ofgem about the “completely unacceptable behaviour” of companies increasing direct debit payments more than is justified

Ofgem has been urged “not to hesitate to take swift action to enforce compliance, including substantial fines” for energy companies.

Business and Energy Secretary Kwasi Kwarteng has written to the energy regulator to ask for a crackdown on energy firms amid claims some are hiking charges by more than is justified.

Last week, the energy regulator raised concerns over increases in direct debit payments by energy companies.

Mr Kwarteng said: “Now more than ever we need to closely scrutinise and hold energy companies to a high standard that the public rightly expects.

“The people who are suffering most as a result of high prices are customers, not energy suppliers.”

A few days ago, the bosses of the UK’s biggest energy suppliers said they expected a significantly larger number of people moving into fuel poverty as a consequence of the price increase and a significant increase in bad debt.

Energy Minister Greg Hands said: “We are cracking down on any unacceptable behaviour.

“Energy suppliers are hereby on notice if they have unfair and unjustified direct debit increases. Ofgem’s review will ensure they’re held to the high standards the British public expects.”

An Ofgem spokesperson told ELN: “We have been tightening regulation over the last six months, paving the way for more robust processes that will ensure all suppliers in the market are fit for purpose and customers are treated fairly.

“We recently wrote to suppliers to warn them that we are commissioning a series of market compliance reviews to ensure amongst other things, that they are handling direct debits fairly and that overall they are held to higher standards for performance on customer service and protecting vulnerable customers.”

 

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