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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.

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