The small energy provider with around 7,500 domestic and non-domestic customers in the UK has been told to improve its process for setting direct debits.

It comes as Ofgem conducted a review of the way all suppliers set their direct debits and it found “significant concerns” with TruEnergy Ltd.

The provider must now conduct an independent audit to assess whether its direct debit policies and processes are compliant and review the levels of all customers using this payment method.

If it fails to comply with the provisional order, Ofgem can take enforcement action.

Charles Hargreaves, deputy director, conduct & enforcement, consumers & markets at Ofgem, said: “We know how hard it is for energy customers right now so it’s crucial that the amount they pay each month by direct debit, or otherwise, is right so they can manage their money.

“Today’s enforcement action is the next step in following through on the findings from our recent review. We need suppliers to step-up and support their customers, especially during these very difficult times, and as regulator, we’ll be making sure they do so.”

YourMoney.com has approached TruEnergy for comment.