Energy companies criticised for direct debit policies
The UK energy sector has come under renewed attack this week with the revelation more than 60% of UK households are currently in credit with their energy companies, where funding is collected by direct debit. The figures breakdown to show the average energy customer using direct debit to cover their charges has overpaid by £74 for electricity and £84 for gas.
A quarter of the UK population are owed more than £100 by their energy suppliers and 8% are in credit to the tune of over £200. However, there have been significant complaints with regards to these credits and the fact that many energy companies are very slow to return them or in some cases refuse to do so citing increased charges in the future as the reason.
Aside from the fact that UK consumers are missing out on additional capital and potential interest, the ongoing overpayment by the vast majority of UK homeowners is allowing energy companies free access to significant funding and the ability to earn interest on these funds. While on the surface figures of £74 and £84 for the average energy customer in the UK may not sound massive, it looks very different when you replicate this across the board!
The energy watchdog is currently looking into the situation with pressure expected to be heaped upon UK energy companies to revise their operations in relation to direct debit payments.
Share this..
Related stories
Will the UK follow India in rate hike?
Today's news that the Indian authorities have been forced to push base rates higher because of strong inflation could be a perfect replica of the forthcoming UK situation. While the Indian economy may well be slightly stronger than the UK this perfectly illustrates how inflation is now becoming a major problem for some governments around the world. It is the influence of outside parties, such as t...
Read MoreGilts market unmoved by Bank of England MPC
The gilts market was unmoved after the Bank of England's decision to suspend the quantitative easing program was confirmed today. In reality the closure of the quantitative easing program, at least in the short term, was well flagged and very much expected by analysts and investors. However, the minimal movement in the gilts market would appear to indicate investors are now happy that the UK gover...
Read MoreBritish Energy Receives Bid Approaches
While it has been something of an open secret in the market that British Energy was up for sale, it seems that the company has received a number of approaches which value the company around the £11 billion level. Sources are suggesting that EDF and a group containing RWE, Iberdrola and Suez have approached the company with EDF the only company to produce a firm proposal as yet. The EDF offer...
Read MoreHSBC breaks rank on UK economic forecast
UK banking giant HSBC has today broken rank with regards to forecast economic growth for the UK economy with a suggestion that 2010 will see a 2.2% increase in the UK economy on a "modest" recovery in consumer spending. This is well above the Treasury's estimate of 1.25% and more in line with the Bank of England which has been more positive than most on the UK economy. However, there will be drawb...
Read MoreWho will take over the role of the Audit Commission?
The coalition government's decision to drop the Audit Commission in favour of a forecast £50 million a year saving has caused many eyebrows to be raised. The very nature of the Audit Commission is to oversee how taxpayers money is spent by the government, something which David Cameron and George Osborne appeared to be very keen to continue. However, the decision to disband the Audit Commission an...
Read More