The vast majority of direct debits of energy customers are “justified and communicated clearly”, Ofgem has concluded.
Sharing the results of a direct debit market compliance review, which looked at almost one million direct debits, Ofgem identified almost 4,000 cases where issues have emerged.
This makes up 0.4% of all the direct debits that have been reviewed during this investigation.
Affected customers have received a total of £117,580 compensation, the regulator confirmed.
The energy regulator stressed that it did not find any evidence that suppliers intentionally increased any direct debit payment above an adequate level.
The review follows several reports last year, which stressed that a quarter of energy customers saw their direct debits double amid the energy crisis.
Last month, speaking in the House of Commons, the Business Secretary revealed that he had fallen victim of a similar practice as he saw an “outrageous” figure put into his direct debit.