The Jeermans at npower have told me my direct debit is going up from £41 a month to £88 a month. They can FRO. It's the right amount based on four years' usage and their tabulating engine doesn't know I have 3/4 tonne of wood to burn. This is a major disincentive to change supplier - every new supplier cranks up the monthly payments until you're vastly in credit.
A lot of suppliers use customer balances to fund their, often loss-making, businesses. There have been several supplier exits this year and I expect a few more over this Winter.
The suppliers have been told not to overcharge on budget payment plans but they still do. Ovo offered to pay interest on credit balances but this was found to be anti-competitive.
I just left npower and was owed £120. After 2 weeks they sent me a cheque despite having my bank details. We all know damn well that this is because they assume that at least a percentage of their leaving customers will forget to bank a cheque or lose it.
