Saudi Press

Saudi Arabia and the world
Monday, Jan 05, 2026

Energy firms have three weeks to justify direct debit hikes, Kwarteng warns

Energy firms have three weeks to justify direct debit hikes, Kwarteng warns

Business secretary says Ofgem has issued compliance reviews after suppliers used cash to ‘prop up finances’
Some energy suppliers have been hiking customers’ direct debit payments by more than is necessary and must explain themselves within three weeks or face punishment, the government has announced.

The comments from the business secretary, Kwasi Kwarteng, follow reports that soaring energy costs have led to some customers receiving demands that double or even triple their monthly payments.

On 1 April, the regulator Ofgem’s energy price cap rose by 54% – or almost £700 – to £1,971 a year, with prices expected to go up again later this year.

A fortnight later, Ofgem’s chief executive, Jonathan Brearley, said it was seeing “troubling signs” that some companies were allowing customer service levels to deteriorate, with concerns raised that some “may have been increasing direct debit payments by more than is necessary, or directing customers to tariffs that may not be in their best interest”.

He said the regulator was commissioning a series of “market compliance reviews” which would include “stricter supervision of how direct debits are handled” by suppliers.

On Tuesday Kwarteng indicated companies had been found to be acting inappropriately. He tweeted: “Some energy suppliers have been increasing direct debits beyond what is required. I can confirm @Ofgem has today issued compliance reviews. Suppliers have three weeks to respond.”

He added: “The regulator will not hesitate to swiftly enforce compliance, including issuing substantial fines.”

In March the consumer expert Martin Lewis told MPs that some energy companies were using unfair and potentially illegal tactics to secure cash at the expense of their customers.

Lewis said some of the increases in direct debits may represent breaches of energy companies’ licence conditions.

“A number of companies are doing it to improve their own cashflow position at the expense of their customers,” he added.

Ofgem recently set out proposals to tackle the misuse of customer credit balances. Last month Brearley said some suppliers had been using this cash “to prop up their finances, enabling them to follow more risky business models”. He added: “Customer credit balances should only be used to reconcile bills, not as a source of risk-free capital.”

On 1 April, energy suppliers were allowed to increase their variable gas and electricity tariffs to the new maximum. Almost all households are now on these capped gas and electricity tariffs – about 22 million in total.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
CNN’s Ranking of Israel’s Women’s Rights Sparks Debate After Misleading Global Index Comparison
Saudi Arabia’s Shifting Regional Alignment Raises Strategic Concerns in Jerusalem
OPEC+ Holds Oil Output Steady Amid Member Tensions and Market Oversupply
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
President Trump Says United States Will Administer Venezuela Until a Secure Leadership Transition
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Saudi-UAE Rift Adds Complexity to Middle East Diplomacy as Trump Signals Firm Leadership
OPEC+ to Keep Oil Output Policy Unchanged Despite Saudi-UAE Tensions Over Yemen
Saudi Arabia and UAE at Odds in Yemen Conflict as Southern Offensive Deepens Gulf Rift
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Why Saudi Arabia May Recalibrate Its US Spending Commitments Amid Rising China–America Rivalry
Riyadh Air’s First Boeing 787-9 Dreamliner Completes Initial Test Flight, Advancing Saudi Carrier’s Launch
Saudi Arabia’s 2025: A Pivotal Year of Global Engagement and Domestic Transformation
Saudi Arabia to Introduce Sugar-Content Based Tax on Sweetened Drinks from January 2026
Saudi Hotels Prepare for New Hospitality Roles as Alcohol Curbs Ease
Global Airports Forum Highlights Saudi Arabia’s Emergence as a Leading Aviation Powerhouse
Saudi Arabia Weighs Strategic Choice on Iran Amid Regional Turbulence
Not Only F-35s: Saudi Arabia to Gain Access to the World’s Most Sensitive Technology
Saudi Arabia Condemns Sydney Bondi Beach Shooting and Expresses Solidarity with Australia
Washington Watches Beijing–Riyadh Rapprochement as Strategic Balance Shifts
Saudi Arabia Urges Stronger Partnerships and Efficient Aid Delivery at OCHA Donor Support Meeting in Geneva
Saudi Arabia’s Vision 2030 Drives Measurable Lift in Global Reputation and Influence
Alcohol Policies Vary Widely Across Muslim-Majority Countries, With Many Permitting Consumption Under Specific Rules
Saudi Arabia Clarifies No Formal Ban on Photography at Holy Mosques for Hajj 2026
Libya and Saudi Arabia Sign Strategic MoU to Boost Telecommunications Cooperation
Elon Musk’s xAI Announces Landmark 500-Megawatt AI Data Center in Saudi Arabia
Israel Moves to Safeguard Regional Stability as F-35 Sales Debate Intensifies
Cardi B to Make Historic Saudi Arabia Debut at Soundstorm 2025 Festival
U.S. Democratic Lawmakers Raise National Security and Influence Concerns Over Paramount’s Hostile Bid for Warner Bros. Discovery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
Wall Street Analysts Clash With Riyadh Over Saudi Arabia’s Deficit Outlook
Trump and Saudi Crown Prince Cement $1 Trillion-Plus Deals in High-Profile White House Summit
Saudi Arabia Opens Alcohol Sales to Wealthy Non-Muslim Residents Under New Access Rules
U.S.–Saudi Rethink Deepens — Washington Moves Ahead Without Linking Riyadh to Israel Normalisation
Saudi Arabia and Israel Deprioritise Diplomacy: Normalisation No Longer a Middle-East Priority
Saudi Arabia Positions Itself as the Backbone of the Global AI Era
As Trump Deepens Ties with Saudi Arabia, Push for Israel Normalization Takes a Back Seat
Thai Food Village Debuts at Saudi Feast Food Festival 2025 Under Thai Commerce Minister Suphajee’s Lead
Saudi Arabia Sharpens Its Strategic Vision as Economic Transformation Enters New Phase
Saudi Arabia Projects $44 Billion Budget Shortfall in 2026 as Economy Rebalances
OPEC+ Unveils New Capacity-Based System to Anchor Future Oil Output Levels
Will Saudi Arabia End Up Bankrolling Israel’s Post-Ceasefire Order in Lebanon?
Saudi Arabia’s SAMAI Initiative Surpasses One-Million-Citizen Milestone in National AI Upskilling Drive
Saudi Arabia’s Specialty Coffee Market Set to Surge as Demand Soars and New Exhibition Drops in December
Saudi Arabia Moves to Open Two New Alcohol Stores for Foreigners Under Vision 2030 Reform
Saudi Arabia’s AI Ambitions Gain Momentum — but Water, Talent and Infrastructure Pose Major Hurdles
×