To repay you for having too much credit.
https://www.bloomberg.com/news/artic...d&cmpId=google
The UK’s Ofgem is naming and shaming energy suppliers who take too much money from their customers on automatic payments.
The energy regulator is stepping up scrutiny of the sector after lax oversight failed to prevent the failure of more than two dozen suppliers as energy prices soared last year. Ofgem told several energy companies on Wednesday that they must change how they calculate direct debits.
The regulator is under pressure to prove it has a closer eye on the behavior of energy companies after admitting that it could have put more checks in place before so many went out of business. Energy bills are set to jump to record levels in October, fueling the worst cost of living crisis for decades and threatening to leave millions unable to pay their bills.
“We know how hard it is for energy customers at the moment so it’s crucial that the amount they pay each month in direct debits is right so they can manage their money,” said Jonathan Brearley, Ofgem’s chief executive officer.
Customers can pay their bills by automatic monthly payments, known as direct debits. Those can be used to spread the cost of energy evenly throughout the year to balance the cost of the energy-intensive winter months with the relatively low-demand summer period.
The regulator has put all suppliers into three groups, depending on how they use the direct debits. Those in the worst group, including Ecotricity Group Ltd, Good Energy Group Plc, Green Energy UK Plc and Utilita Energy Ltd, need to change how they use the payments and report their progress back to Ofgem.
About 8% of customers on the default price cap tariff, or 500,000 customers, saw an increase in payments of more than 100%. Suppliers have been asked to review these increases.
The regulator has been looking into how energy companies use customer money including credit balances built up through over paying on bills. Companies including Centrica Plc and EON SE have argued the funds should be ring fenced to stop companies using them as working capital.
Ofgem will start engaging with the companies and if they don’t change their practices, the regulator may take enforcement action which could include fines.
Some of the biggest suppliers, including, Centrica’s British Gas unit, Iberdrola SA’s Scottish Power and the UK unit of Electricite de France SA were in the top group, meaning they had no issues.
Companies in the second group, meaning they had minor weaknesses, included the UK unit of EON, Octopus Energy Ltd and Bulb Energy Ltd., which was effectively nationalized last year.
Or read the OFGEM press release -
https://www.ofgem.gov.uk/publication...-direct-debits
https://www.bloomberg.com/news/artic...d&cmpId=google
The UK’s Ofgem is naming and shaming energy suppliers who take too much money from their customers on automatic payments.
The energy regulator is stepping up scrutiny of the sector after lax oversight failed to prevent the failure of more than two dozen suppliers as energy prices soared last year. Ofgem told several energy companies on Wednesday that they must change how they calculate direct debits.
The regulator is under pressure to prove it has a closer eye on the behavior of energy companies after admitting that it could have put more checks in place before so many went out of business. Energy bills are set to jump to record levels in October, fueling the worst cost of living crisis for decades and threatening to leave millions unable to pay their bills.
“We know how hard it is for energy customers at the moment so it’s crucial that the amount they pay each month in direct debits is right so they can manage their money,” said Jonathan Brearley, Ofgem’s chief executive officer.
Customers can pay their bills by automatic monthly payments, known as direct debits. Those can be used to spread the cost of energy evenly throughout the year to balance the cost of the energy-intensive winter months with the relatively low-demand summer period.
The regulator has put all suppliers into three groups, depending on how they use the direct debits. Those in the worst group, including Ecotricity Group Ltd, Good Energy Group Plc, Green Energy UK Plc and Utilita Energy Ltd, need to change how they use the payments and report their progress back to Ofgem.
About 8% of customers on the default price cap tariff, or 500,000 customers, saw an increase in payments of more than 100%. Suppliers have been asked to review these increases.
The regulator has been looking into how energy companies use customer money including credit balances built up through over paying on bills. Companies including Centrica Plc and EON SE have argued the funds should be ring fenced to stop companies using them as working capital.
Ofgem will start engaging with the companies and if they don’t change their practices, the regulator may take enforcement action which could include fines.
Some of the biggest suppliers, including, Centrica’s British Gas unit, Iberdrola SA’s Scottish Power and the UK unit of Electricite de France SA were in the top group, meaning they had no issues.
Companies in the second group, meaning they had minor weaknesses, included the UK unit of EON, Octopus Energy Ltd and Bulb Energy Ltd., which was effectively nationalized last year.
Or read the OFGEM press release -
https://www.ofgem.gov.uk/publication...-direct-debits
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