Limits on Extra Charges for Utility Bills Not Paid by Direct Debit

This bill would limit how much extra money utility companies can charge customers who do not pay their bills by direct debit. Currently, energy, water, and other utility companies can add extra fees when customers pay by cash, cheque, or prepayment meter instead of setting up automatic bank payments. The bill would set maximum limits on these additional charges. Direct debit is when a company automatically takes money from your bank account each month. The government says this will protect customers who cannot or choose not to use direct debit payments. Some customers cannot get direct debit because they do not have bank accounts or have poor credit history. Others prefer to control when payments leave their account. The bill would affect millions of households across the UK who currently pay higher rates for their utilities.

• 1Sets maximum limits on extra charges for customers not using direct debit payments
• 2Applies to utility companies including gas, electricity, and water suppliers
• 3Protects customers who cannot access direct debit due to banking or credit issues
• 4Would reduce costs for households paying by cash, cheque, or prepayment meters
• 5Affects millions of UK customers who currently pay higher utility rates