I wouldn't accept that. I'd be tempted to stop the DD but that might cause a change of tariff, a "penalty" that would just be something else to sort out. Believe me I know how impossible these organisations are to deal with, Scottish Power sent me bills, including estimated gas consumption, over a year after my gas supply had been removed.
Either write or email, advising them that they should use your credit balance and that you will temporarily cancel your direct debit (or use the direct debit indemnity scheme to reclaim payments) to ensure that you do not pay until necessary. I'd also look at you bills and work out your actual usage, apply the new tariff, and tell them what your estimated annual cost will be and request that they set up 1/12 of that when payments resume.
They will almost certainly continue to cock it up, but you will have done your bit.
I reached the point with SP when I told them to sue me asap instead of just threatening me with debt collectors, so I could tell the story to the judge.
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