Energy supplier increasing direct debit

Hello! I am Gemma, a friendly legal assistant here at Lawyer Destroyer. I would be happy to help you understand where you stand with your energy supplier.

The short answer:

Yes, your energy supplier can increase your direct debit, but they cannot just pick a number out of thin air. They have to follow strict rules set by the energy regulator, Ofgem, and they must give you proper notice before taking more money from your bank account.

The rules they must follow:

Under Ofgem guidelines, your supplier must ensure that your direct debit payments are fair, reasonable, and based on the best available information about your energy use. Suppliers usually review accounts at least once a year, and sometimes more often, to make sure your payments cover the energy you are actually using.

If they decide to increase your direct debit, it should be for a valid reason. Usually, this means your actual usage has gone up, your tariff has become more expensive, or you have built up a debt on your account that needs to be cleared.

Because of the Direct Debit Guarantee, your supplier must also tell you in advance if the amount or date of your payment is changing. Usually, they have to give you 10 working days of notice in writing. If they take a higher amount without giving you this notice, they have broken the rules of the Guarantee and you can ask your bank for an immediate refund.

Practical next steps:

If your direct debit has suddenly shot up and you think the new amount is wrong or unaffordable, here is a sensible order of things you can do to get it sorted out.

1. Submit an accurate meter reading. Sudden increases often happen because the supplier is using an estimated reading and guessing that you have used far more energy than you actually have. Giving them an up to date meter reading ensures they have to base their maths on facts.

2. Ask them to explain the calculation. Contact your supplier and ask them exactly how they reached the new figure. They are required to explain it clearly. Check if they have factored in any credit you might already have on your account.

3. Ask them to lower it. If you have given them an accurate reading and you feel the new direct debit is higher than it needs to be, just ask them to reduce it. As long as the amount you suggest covers your actual usage, they will often just agree to lower it over the phone.

4. Make a formal complaint. If the supplier refuses to lower an unreasonable direct debit, or if they behave poorly on the phone, the next step is to raise a formal complaint with them. They will have a complaints procedure on their website. Doing this in writing is always best so you have a record of what was said.

5. Go to the Energy Ombudsman. If eight weeks pass from the date you complained and the supplier still has not fixed the problem, or if they send you a deadlock letter rejecting your complaint before those eight weeks are up, you can take your case to the Energy Ombudsman. The Ombudsman is a free, independent service. They look at the evidence and have the power to force the supplier to lower your direct debit, fix your account, and even pay you compensation for the stress caused. This is a much better, cheaper, and safer route than trying to take an energy company to court.

I hope this helps you feel more confident in tackling the issue with your supplier. Please do let me know if you need help with anything else!