Winter heating underpayment brings summer pain

Are the big energy firms over-inflating customers’ direct debit charges? Reader Gary Waldram reckons that’s the case. He’s upset with his supplier - Scottish Power – after it told him it was increasing his monthly direct debit charge by 62 per cent.

"The direct debit increased to £97 from £60 which, considering I only owe £136, is an absurd and astronomical increase," he said. "The increase is even more ludicrous, when you consider the winter period is now over and as I am going into the summer period my consumption will drop dramatically."

He reckons Scottish Power – and the other Big Six energy firms - use underpayments during the winter months as an excuse to ramp up direct debits. "I suspect the majority of customers end up having large credits with their gas and electricity suppliers," he said.

I put his story to the company which told me that the increase in Gary’s payment is to clear the outstanding balance on his account by the time of his annual review in July, at which point the payment will be re-assessed.

A spokesperson said: “We aim to set direct debit payments accurately. We have recently launched an online direct debit management tool which gives customers the opportunity to manage their own payments. They can increase or decrease monthly payments by up to 20 per cent. If accounts have a credit balance at the time of the annual review, we will pay additional money back.”

Gary’s unconvinced and warns that other readers may be being overcharged. “High increases are unfair and totally unnecessary considering the amount of data the energy suppliers hold on their customers’ gas and electricity consumption,” he said.

Check any increase in your direct debit payments to see whether they reflect your actual usage. If not, complain. As Gary says: “If enough people complain, it may force suppliers to improve the algorithms they use to calculate new direct debit payments and allow customers keep more money in their own bank accounts.”