Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment she has made of the implications for her policies of differences in the time taken for (a) British Gas and (b) other energy providers to (i) increase the value of direct debits when accounts are in debt and (ii) reduce the value of direct debits when accounts are in credit.
The aim of a direct debit payment arrangement should be for the customer to have a zero balance on their accounts at the end of a year.
In August 2022, Ofgem changed the licence conditions on suppliers to ensure that direct debits are based on the best and most current information available. Energy suppliers typically review their customers’ direct debit arrangements twice a year and this should be based on an actual meter reading to ensure payments are set at the correct level to avoid a large credit or debit balance building up.