Energy companies have three weeks to justify 'unacceptable' price hikes as UK battles cost of living crisis

A three week deadline has been slapped down on energy firms to justify 'unacceptable' price increases to consumers bills. It comes as many householders are receiving new energy bills this month in the wake of the price cap increase on April 1.

Business secretary, Kwasi Kwarteng is giving the UK energy suppliers three weeks to justify the harsh increases in direct debit payments as an investigation is set to get underway. The investigation will look into claims that suppliers are swindling customers by inflating direct debits by more than the price cap as a bid to handle cashflow problems.

Mr Kwarteng has said the firm has three weeks to respond to allegations of "completely unacceptable behaviour" relating to unjustified direct debit increases, reports The Mirror. On Tuesday, Boris Johnson came under increasing pressure on the energy issue as BP announced its highest quarterly profits for 14 years – almost £5billion in three months or £639 a second.

Read more:I've just got my E.ON energy bill and it's a mighty hike in price

Customers are noticing that their direct debit payments are being hit as suppliers are paying more for gas and electricity due to increases in wholesale prices. A price cap restricts the amount that customers can be charged but government sources believe that some suppliers are increasing these charges to increase their financial stability.

Suppliers are allowed to raise monthly charges, but it must be according to the household's usage and you must be notified of this beforehand - usually at least 10 days before it goes up. Customers can dispute this amount, or submit an exact meter reading to ensure the increase is linked to their actual usage.

But some customers have said their payments have risen