Energy companies are increasing direct customer debits disproportionately to raising price caps, and regulators should “control” large-scale practices, MP reports.
Martin Lewis, founder of Money Saving Expert, warned of “problems worried” that energy companies are disproportionately increasing customer direct debits to 54% of April’s Ofgem price limit. ..
He told the Department for Business, Energy and Industry Strategy (BEIS) Committee:
“This is not mathematically appropriate and is a breach of license terms. We are very concerned that many companies are doing it to improve their cash flow situation at the expense of their customers and are regulated. I hope the authorities will crack down on it quite significantly. “
He added: “It’s important to remember that the market is no longer competitive. It’s not a market … no one can switch.”
To give an example of a company doing this, Lewis replied: This is a market-wide system.
“Companies see this price change as an opportunity to embody the payment change.
“That’s right for every company. Consumers have to be careful.
“Currently, the amount that seems to be playing fast and loose is huge. We need to crack down and the companies that do this need to be more demanding.”
Lewis previously told the Commission that the government’s current set of measures to help low-income people cope with the rise in energy bills is “not enough” and “needs to give them more money. There is. ” It’s really as easy as that. “
Gillian Cooper, head of energy policy for civil counseling, also told the Commission that the government’s current energy bill support measures are “insufficient for the scale of the crisis we are facing.” Added as. The number of households that cannot cope with energy prices will increase as seen this year. “
She states: “Without further support, a significant proportion of the population is facing a crisis where they cannot afford to stay safe and warm in their homes.
“It will push up the cost of other public services, because when you live in a cold house, you are more likely to suffer from illness, which will increase the demand for NHS services.
“Children living in cold homes can’t grow up and have a hard time concentrating on school, so the government needs to provide more support to support this crisis.”
By increasing the eligibility of profits, profits, grants, warm home grants, expanding energy rebates and delaying people from having to repay it to reflect the actual inflation rate. We sought more targeted support for low-income households. Subsidy.