24 November 2008
Gas and electricity providers have been accused of putting up the direct debits of their customers - even if they are in credit.
Tory MP Peter Luff, chairman of the business and enterprise select committee, told the BBC that energy firms are increasing direct debit payments to boost their cash flow.
He is calling on industry regulator Ofgem to launch an investigation into the matter, claiming the practice could be widespread, the news provider reports.
"I think things are getting worse and there will be people in fuel poverty who are paying by direct debit who can't afford these huge increases," he remarked.
The Energy Retail Association has denied the claims insisting it is "absolutely not the case" that providers are profiting in this way.
Meanwhile, Consumer Focus is accusing gas and electricity providers of profiting from the poor by charging a premium for pre-payment meters.
The group claims the extra charges being levied on pre-payment customers are being used to subsidise cheaper deals for others.