Every year our gas and electricity supplier writes to us and significantly increases our direct debit based on our previous years usage – which by the way, we’ve been reducing, installing low wattage light bulbs and not leaving things on standby. This is nothing but a scam aimed at increasing their cash reserves.

Now Ofgem has finally acted

The new condition in suppliers’ licences would mean they must ensure payment levels are clearly and accurately explained and based on the best available information. Suppliers will also need to be able to justify why they are holding onto credit surpluses built up by a customer.

Alistair Buchanan, Ofgem Chief Executive, said: “Direct debit is one of the cheapest ways to pay for energy and we are concerned that if customers cannot clearly understand how their payment plan works they will lose confidence. The proposed licence condition will help give customers peace of mind that the amount they are being asked to pay is based on their likely energy use. It will help ensure suppliers are more transparent about how they calculate payments.” Ofgem.

Good news – hopefully.