BEFORE my energy provider went bust I was paying less than £94 per month. After my new supplier set my direct debit at £546 I wanted to find out why – and how many others might be affected.
Having been moved over by Ofgem after my gas & electricity provider collapsed, @BritishGas had this in store for me.
— Kirsteen Paterson (@kapaterson) January 20, 2022
I had been paying just over £90 so this is 5.8 times more and I look forward to calling them tomorrow. #CheckYourBills, folks pic.twitter.com/lOEZcOhAGC
More than 4.17million customer accounts have been affected since smaller firms began failing in September amidst rising wholesale gas costs. These include Scottish suppliers Together Energy and People’s Energy, the latter of which was my provider.
Ofgem, the UK-wide regulator, switched me and 350,000 other people on to British Gas. Following the agency’s advice, I waited for the process to take place and an early email suggested my yearly dual-fuel spend would be £1387.
But when the firm quoted a far higher level for the monthly direct debit it was urging me to set-up, the numbers didn’t add up.
When I tweeted about the matter, many others responded to say they too had had similar experiences.
And two expert services have said we’re far from alone.
Colin Mathieson, spokesperson for Advice Direct Scotland – which runs Scotland’s national energy advice service energyadvice.scot – said: “The energy crisis has led to unprecedented concern about energy prices and the cost of living.
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“This crisis has impacted both households whose energy supplier has failed, and those households who are extremely concerned about projected huge price hikes in April.
“At energyadvice.scot we have received more than four times the anticipated level of enquiries since it opened in April last year. Common concerns are big jumps in monthly direct debit payments, real concerns about how these extra costs can be met, and worries about what happens when your supplier goes out of business.
"If you are worried about your direct debit payments or your ability to pay, we would always recommend speaking to your supplier or contacting energyadvice.scot to discuss your situation. We also administer homeheatingadvice.scot, a fund designed to help those households facing the stark choice between heating and eating.”
Michael O’Brien, energy policy officer at Citizens Advice Scotland, said: “The crisis in the energy market, combined with ongoing issues with the cost of living and failing suppliers, could mean a nasty shock is in store for lots of people across the country.
“Ofgem’s supplier of last resort process protects people’s energy supplies when a company fails, but we’re seeing examples of people being erroneously billed by the appointed supplier. If you were previously on a fixed tariff, you can also expect to pay higher prices as a result. It’s worth remembering that suppliers are obligated to offer their variable rate; those are subject to the price cap, so they’re the most cost-effective option for households at the moment.
“People should check their bills and shouldn’t be afraid to challenge their new deals if they think the billing is inaccurate. People can get further information from their local CAB or check our online advice. We can also offer ways for people to maximise their incomes if they are struggling to pay bills.”
British Gas chopped £400 off my monthly payment when I queried the matter. A staff member said they’d had many similar calls and incorrect information from Ofgem was at the root of the error.
Neither Ofgem nor Centrica, its parent company, responded to my questions last night.
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