Asked by: Baroness Northover (Liberal Democrat - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what steps they are taking to prevent energy companies from increasing direct debit payments from customers over the summer while global energy prices are falling.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
A customer’s direct debit payment arrangement should avoid large credit or debit balance at the end of 12-month period. Energy suppliers are required to ensure a customer’s direct debit payments are set on the best available information. For existing customers, the payment level should be based on energy consumption over the previous year with adjustments for price changes. With Ofgem now setting the energy price cap on a quarterly basis, regular adequacy reviews on customers’ accounts by suppliers should mean when the cost of energy falls, they will see this reflected in their direct debit payment sooner.