MP Drew Hendry launches campaign to claw back cash from energy companies for over paid bills
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Highland MP Drew Hendry has launched a campaign calling on energy companies to allow consumers to withdraw funds accrued from higher-than-necessary direct debit payments.
Mr Hendry hopes the campaign will highlight the issue to consumers and ensure they are aware of any credit balance they may have built up with their energy provider and how to claim it back.
The decision to launch the campaign came after Mr Hendry heard from several constituents saying that their energy provider raised their monthly direct debit amount despite having a large credit balance on their account.
He believes that lack of intervention by Ofgem and the UK government has allowed energy companies to unfairly hold customers' money running up balances of hundreds and even thousands of pounds and is pushing for tighter regulation.
Current Ofgem regulations state that companies may increase direct debit payments if they deem it “fair” to do so and that consumers may withdraw funds unless companies have “reasonable” grounds to refuse.
Mr Hendry is hoping that the It’s Your Money campaign will alert people that they may be overpaying on already high energy bills and may wish to withdraw some or all of their credit balance or reduce their monthly payments.
He said: “Energy companies are increasing consumers' direct debits without customers' agreement, and in many cases, these increases are far more than is needed to cover bills.
“Often, customer accounts are needlessly sitting hundreds or even thousands of pounds in credit, and bill payers can often be unaware that their own money is sitting in energy company bank accounts. Sometimes, this is a small amount, but even that could make a difference in getting through the week or month.
“That’s why I’m launching the ‘It’s Your Money’ campaign. And here’s what folk can do right now: If you haven’t already, sign up for an online account with your energy provider. There, you’ll be able to see an up-to-date reading of your account balance.
“If your account is in credit and you need this money now, ask for it. Or alternatively, ask for a reduction of your direct debit payments until it balances out.
“I’ve heard of companies making this difficult or even outright refusing these perfectly reasonable requests. We know it can be done – constituents who are customers of Octopus, for example, tell me they can withdraw their excess funds at the click of a button.
“I’ll be pushing for tighter regulation in this area so that consumers don’t find themselves at the mercy of their company’s goodwill (or lack thereof).
“If they still aren’t budging, and all else fails, you have the right to complain to Ofgem. This money shouldn’t be sitting in energy companies’ accounts, it should be in your pocket. After all, it’s your money.”
