Energy companies must refund customers who overpaid for direct debits

Energy companies must refund customers who overpaid for direct debits

Ofgem released its assessment this morning, reporting “only minor issues” in direct debit processes at most suppliers, but “moderate to severe” weaknesses at five: Ecotricity, Good Energy, Green Energy UK, Utilita Energy and TruEnergy.

It also had “serious concerns” about the UK Energy Incubator Hub (UKEIH), which is no longer trading.

It said issues “covered a spectrum of weaknesses, ranging from insufficiently documented or embedded processes, weak governance and controls, to a general lack of a structured approach to setting up customer direct debits.”

Ofgem added: “In some cases, this can lead to customer direct debits being set up incorrectly or not being evaluated for a long time, which can lead to the build-up of unnecessarily large credits or debts, depending on whether the customer is under- or under-valued. pay a lot.

“Ofgem is initiating compliance agreements with these suppliers to make rapid and robust improvements to processes and reassess customer direct debits as needed. If these suppliers do not act quickly enough, Ofgem will consider enforcement action.”

No significant problems were found with British Gas, EDF, Scottish Power or SO Energy.

“Minor weaknesses” were found at Bulb, E.ON, Octopus Energy, Outfox the Market, Ovo, Shell and Utility Warehouse. Ofgem highlighted issues such as the lack of documented policies or guidance for staff.


Have you suffered from any of the problems listed above? Let us know in the comments below…