The small energy supplier with around 7,500 domestic and non-domestic customers in the UK has been asked to improve its process for setting up direct debits.

It comes as Ofgem conducted a review of how all suppliers set their direct debits and found ‘significant concerns’ with TruEnergy Ltd.

The provider must now conduct an independent audit to assess whether its direct debit policies and processes are in compliance and review the levels of all customers using this payment method.

If he fails to comply with the interim order, Ofgem may take enforcement action.

Charles Hargreaves, Deputy Director, Conduct and Enforcement, Consumers and Markets at Ofgem, said: “We know how difficult it is for energy customers at the moment so it is crucial that the amount they pay each month by direct debit, or otherwise, be fair so they can manage their money.

“Today’s enforcement action is the next step in following up on the findings of our recent review. We need providers to step up and support their customers, especially in these very difficult times, and as a regulator we will ensure that they do.

YourMoney.com approached TruEnergy for comment.