The energy regulator has said it has seen "troubling signs" that suppliers may have been increasing direct debit payments by "more than is necessary". Ofgem said it was concerned that firms may be directing customers to energy deals that aren't in their "best interest".
It comes as households face significant increases in their energy bills. On 1 April, yearly bills increased by an average of £693 for about 18 million households on standard tariffs. And some 4.5 million prepayment customers saw an average increase of £708 - from £1,309 to £2,017. Energy experts have encouraged customers to take and submit meter readings as the changes take effect, in an attempt to save cash.
Ofgem Chief Executive Brearly said Ofgem planned a series of reviews and "stricter supervision" of energy firms over its concerns that the suppliers 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". The regulator said it would issue "substantial fines" to firms found failing to comply with the measures.
Energy bills have increased because the energy price cap - the maximum price suppliers in England,
Wales and Scotland can charge households - is being raised. Energy firms have been able to increase bills by 54% following the introduction of the new cap on 1 April.
People struggling to afford energy bills can seek advice from charities such as Citizens Advice, Turn2Us or the StepChange debt charity. All the big energy firms also have hardship funds that can offer assistance if someone is struggling to pay.
The government has said it will offer extra help worth a total of £350 via the council tax system in England too. The warm house discount scheme will also be expanded to cover three million households.
It offers low income households a one-off annual discount on their electricity bill, and was worth £140 in 2021-22.
