Ofgem, the market regulator, said there were “troubling signs” that companies had increased direct debits from households more than needed to cover a £693 rise in the average bill.

Hundreds of Mirror readers have written demanding direct debit increases after the energy price cap was raised by 54%.

Some of the country’s biggest energy companies are to be investigated over fears they have overcharged their customers.

Ofgem, the market regulator, said there were “troubling signs” that companies had increased direct debits from households more than needed to cover a £693 rise in the average bill.

And energy chiefs have warned of a “really awful” fall for price hikes.

Industry analysts Cornwall Insight predict the next cap level, which comes into effect in October, could rise by a further 30% to over £2,600 a year.

Here, Online Money Editor, Emma Munbodh, answers many of your direct debit questions…

Is my energy supplier allowed to increase my direct debits?

Yes, if you are on a standard variable rate they can increase it up to the price cap level. Suppliers have the right and responsibility to ensure that customers’ payments accurately reflect their energy consumption. But customers also need to be told in advance that their payments are increasing and the reasons why.

Justina Miltienyte of Uswitch.com explains, “Consumers need to keep an eye on their monthly direct debit payments and if they think they are too high or unaffordable, they should contact their provider as soon as possible to avoid going into debt. or pay too much.

“Any accumulated credit balance may be refunded unless the supplier has a good reason for not doing so, which he must explain. Normally, we would advise consumers to get that money back before the summer, but given rising prices, it might be worth keeping the balance there. Any extra money can act as a buffer against future price increases.

“It is important that Ofgem continues to monitor providers closely to ensure that any increase in customer payments is fair and reflects their usage.”

Can they increase it by the full 54% change in the energy price cap hike?

Technically yes, but providers will rate direct debits based on your credit balance (i.e. if you have accumulated lots, your direct debit may be lower) and also usage (i.e. i.e. if you used more or less than expected). So the price cap change doesn’t translate perfectly to your direct debit level.

What can’t they do?

Suppliers are not allowed to increase direct debits simply for the purpose of raising capital. They must take all reasonable steps to establish direct debit payments based on current and accurate information about a customer’s current consumption and rate, as well as other factors, including customer credit balances. .

Ofgem says it expects providers to regularly review their customers’ direct debit amounts to ensure they are accurate and appropriate.

Do I need to be informed in advance of any changes to my direct debits?

Yes, you should be notified 10-30 days before the increase. The Direct Debit Guarantee, which covers all payments and is governed by Pay.UK, states: “If there is a change to the amount, date or frequency of your Direct Debit, the organization will notify you (normally 10 business days) prior to your account being debited or as otherwise agreed.

“If you ask the organization to collect a payment, confirmation of the amount and date will be given to you at the time of the request.”

Can I request a refund of my credit balance?

Consumers tend to consume more energy in winter than in summer. Typically, providers try to average payments so that they are the same each month, meaning that for part of the year a consumer would accumulate a credit balance because they are paying more than they are consuming.

At other times, they paid less than their consumption, reducing their credit balance or going into debt.

Customers can ask their supplier to refund their credit balance. Suppliers must do so promptly unless there are reasonable grounds not to, and they must explain to the customer why. But keep in mind that by doing this you are taking money out of the pot for your next bill.

I think my direct debit payments have increased more than necessary, what should I do?

A spokesperson for Ofgem told the Mirror: ‘If a customer believes their supplier has set direct debit payments at an unreasonable level which does not reflect their usage, tariff and credit balance, they should contact their supplier. .

“Providers must have reasonable grounds not to revise direct debit payments and must explain to the customer why.”

What should I do if my supplier simply refuses to return my balance?

If a customer has requested a refund of a credit balance on their account and is having difficulty getting it returned by the supplier, they can complain to their supplier.

If the customer is not satisfied with the outcome of the complaint, he can take it to the energy ombudsman who will investigate on his behalf.