While this is a commercial matter, my understanding is that for a number of years, BT has applied a price differential between customers who pay their accounts by direct debit and those who pay by other means. This reflects the increased processing and debt management costs associated with payments not made by direct debit. Such differentials are common practice among communications providers and utility service providers.
From 1 May 2007, BT is changing how it presents this differential from a discount for those customers paying by direct debit, to a charge for those paying by other means. BT has combined this change with an increase of £1.50 a quarter in the charge (from £3 to £4.50).
The Light User Scheme, In Contact and BT Basic will not be affected by the increased charge. These are the special tariff schemes offered to vulnerable customers by BT as a result of the Universal Service Obligation placed on the company.
I have raised the matter with the chief executive officer of the independent regulator, the Office of Communications (Ofcom). Ofcom is considering whether any of the changes BT has recently made raise any regulatory issues and is coming back to me on this in April.