Martin Lewis’ urgent advice to anyone using direct debit to pay their energy bills
Britons could end up with unnecessary debt as greedy energy companies unfairly increase direct debits to boost their cash flow, warns Martin Lewis. Energy prices have already soared after the price cap was raised to 54% on April 1, forcing some people to choose between heating and eating.
But, money-saving expert Martin Lewis today announced price hikes of up to 250% for some unlucky customers, as companies seek to bolster their coffers ahead of another likely price cap increase. to reach consumers in October. Speaking to BBC 5Live, Lewis said: “Some businesses – not all – are deliberately increasing direct debits to increase their own cash flow.”
He described the rogue tactic as a “12-month smoothing” plan, but it could lead to massive fines of up to 10% of turnover if a business is caught. Lewis has already testified in Parliament about the practice, prompting energy regulator Ofgem to launch an investigation.
READ MORE: Cost of living: Martin Lewis’ ‘magic number’ for determining when to pay energy bills to save money
(Picture: PA)
People “on credit” and “at ceiling price” seeing increases well over 54% are “unjustifiable and shouldn’t happen,” according to Lewis. But, there are a few scenarios that might be acceptable, including increases of up to around 65%.
Anyone on a cheap fix that ended and went through the price cap can expect their bill to double. As well as those on the price cap that will move on to a solution. Customers on a default tariff and in energy debt could also see a sharp increase.
He advises price cap and credit players to call companies and challenge the new bill, asking them to justify the increase, which has seen some consumers’ bills double or even triple. If negotiations fail and they refuse to drop the bill, he recommends filing a formal complaint and going to the ombudsman.
“Let them know you’re doing this,” he added, “because it’s costing them money to get you to mediators.” He also clarified that it was not a “negotiation” but a “legal requirement” for your levy to be fair.
However, he warned to fire call staff ‘who are going through a very difficult time at the moment’. He said, “We do it politely and kindly, don’t be abusive to these people.” The call staff are not responsible for the increases in levies and “are human” like all of us.
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