'My energy provider owed me £800 but still doubled my direct debit'

Energy companies are doubling the direct debits of customers who are in credit even as the watchdog prepares to investigate the practice.

Suppliers have until next week to submit data to the regulator, Ofgem, to prove that they have not been unfairly increasing bills.

The watchdog had grown suspicious that firms were overcharging customers and using their credit balances to shore up their own finances. The energy price cap increased by 54pc in April but tens of thousands of households have seen their bills rise by much more.

One Telegraph Money reader was £800 in credit with her supplier, but after asking for a refund received only half of it back, while her direct debit doubled.

Another reader, Richard John, said his supplier, E.On, had tried to raise his direct debit from £60 to £113.

“I told them to put it up to no more than £80 a month or I would cancel my direct debit,” added Mr John, who said his usage had dropped. “They agreed. I told them I was turning the heating off and that if I got cold I would start burning the furniture, as it would be cheaper.” 

Other customers took to social media this week to voice their complaints. One British Gas customer said his quarterly bill was now six times higher, while another said her monthly bill had increased from £64 to £433.

Earlier this month a report from MoneySavingExpert found that 30pc of British Gas, Octopus and Shell Energy customers said their direct debits had doubled since the increase in the price cap.

Gillian Cooper, the head of Citizens Advice, the charity, said: “In the past we have seen some energy companies increase their customers’ payments to shore up their finances. 

"Underhand tactics like this are unacceptable. Ofgem must ensure suppliers are only increasing direct debits for legitimate reasons.”

A British Gas spokesman said it held its customer deposits in a separate account. An E.On spokesman said it regularly reviewed customers’ direct debits to ensure they were paying for the energy they used and urged struggling customers to get in touch.