Households could see energy bill direct debits increase before next price cap increase

Direct debits from energy bills could increase before the next capitalization increase, according to reports.

An Ofgem spokesman admitted that it was possible, just hours before Chancellor Nadhim Zahaui and commercial secretary Kwasi Kwarteng were will meet executives from gas and electricity companies in Downing Street to drive solutions to the expected increase in bills during the winter.

Consultancy Cornwall Insight forecast bills to soar to around £3,582 in October, from £1,971 previously, before rising further in the new year.

Clients therefore thought they might have had at least a two-month cushion to prepare for the first increase.

However, the Ofgem spokesman told Sky News: “Direct debits are generally charged in such a way that customers build up appropriate credit during the hotter summer months when usage is lower, so the amount they pay it balances out during the coldest winter period where usage is highest.

“Therefore, it is possible that direct debits will increase ahead of a price cap increase, or even when a customer’s usage has remained constant.

“But consumers can request credit balances to be returned at any time and can contact their providers to change how their direct debit is distributed so that, for example, they pay exactly what they used in that month and don’t accumulate a credit ahead. of winter”.

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Former Prime Minister Gordon Brown has suggested scrapping the price cap and negotiating lower rates with energy bosses.

and Tory leadership candidates Rishi Sunak Y liz truss they continue to face questions about what they will do to help struggling families, while Labor has called for a “loophole” in the oil and gas windfall tax to be closed to raise more support money.

Consumer advocate Martin Lewis also made similar calls, telling broadcasters: “I accept the point that Boris Johnson is running a zombie government and he can’t do much, but the two candidates, one of them will be our first minister, they need to get together in the national interest to tell us the least of what they will do.

‘Anxiety for millions’

Brown, who earlier called on Tory leadership contenders to put aside their differences and work on an emergency plan with Boris Johnson, was joined in his calls by a boss at one of the UK’s biggest energy companies.

Philippe Commaret, managing director of customers at EDF, said: “We are asking the government and the two Conservative candidates to work with the industry, so that we can find a viable solution for customers who need it most this winter.

“Customers need to know now that help is coming. Delaying a decision will cause millions of people anxiety, and discussions need to take place now.”

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A government spokesman said: “We are working with the electricity sector to push through reforms and ensure the market delivers better outcomes for people across the UK.

“Meanwhile, and as we announced in May, the government continues to assess windfall gains seen in certain parts of the power generation sector and the appropriate and proportionate steps to take.”

There has also been widespread anger this week over ShellPA and british gas owner Centrica announces excellent financial results as homes struggle.

Millions of UK households are already in debt from their energy bills – with £1.3bn owed, even before bills skyrocket by more than 80%, according to analysts at Uswitch.

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