Energy bills could fall for thousands of homes as regulator Ofgem orders power companies to review doubling direct debits for gas and electricity.
Energy bills could hit an eye-watering £3,300 on average this winter as the cost of living crisis continues to grip families.
Ofgem today told a number of energy suppliers to take "immediate and urgent action" after a review found problems with how these firms charge customers.
Out of a total of 17 large suppliers in the market most had minor issues, but five were found to have "moderate or severe" weaknesses.
Ofgem is asking all energy firms that hiked 500,000 customers' direct debits by more than 100% to review these bills.
Ofgem added: "Where appropriate, Ofgem also expects suppliers to adjust any miscalculations, including making repayments if needed, and consider whether a goodwill payment is warranted."
Energy firms have to review the accounts of all customers whose direct debits increased by 100% or more between 1 February and 30 April 2022.
The average energy bill rose by 62% in this period for people paying by direct debit.
Ofgem has given energy companies two weeks to do this.
But the regulator said it had not yet found evidence of unfairly high direct debit charges.
Ofgem chief executive Jonathan Brearley said: “We know how hard it is for energy customers at the moment so it’s crucial that the amount they pay each month in direct debits is right so they can manage their money.
“Suppliers must do all they can, especially during the current gas crisis, to support customers and to recognise the significant worry and concern increased direct debits can cause."
Latest predictions from analysts at Cornwall Insight suggest the price cap could rise to £3,244 from October - up from the £3,003 figure they estimated in June.
It is then predicted that the price cap could rise to £3,363 from January.
The latest price cap prediction comes after some of the biggest energy firms and charities met with MoneySavingExpert founder Martin Lewis to address concerns around the energy market.
Energy suppliers that attended include, Ovo, British Gas, Octopus, E.ON, EDF and Shell, while the charities that participated were Citizens Advice, National Energy Action and StepChange.
Energy companies did not say they would cut their prices as a result of the meeting - but they did agree to help customers in other ways.
These include being more transparent about why energy bills are going up or down.
Energy firm bosses are also considering publishing all the details of their deals, after it was suggested that households often miss out on cheaper rates because they’re not always advertised.
