2 min Read
05 Jun 2014

Written by Liam

Over 30 years experience in financial services, residential lettings and property sales. Director of a leading national estate agency chain, until leaving in 2008 to pursue other commercial interests. Vast experience in new business development, business change, management development and business strategy.

More about Liam

Does your energy supplier owe you money?

Does your energy supplier owe you money?

Does your energy supplier owe you money?Research carried out by energy comparison website Uswitch estimates that over 13 million households are in credit to their energy supplier for a total sum of £1.2bn.

This high amount of credit built up is mainly due to the mild winter weather, resulting in lower energy consumption. Over half UK households are in credit with some 26,000 of these with credit balances of around £500.

Why are energy suppliers holding on to our money?

  • The majority of UK households pay their energy bills by direct debit on a monthly basis
  • The amount charged each month is an estimate of usage over a 12 month period
  • The amount paid each month remains the same throughout the year to even out the impact of higher winter bills
  • Accounts are typically reviewed every 12 months with a new monthly amount agreed based on estimated usage
  • If the actual usage falls below the estimated usage a credit balance will build up on the account

How can I get my money refunded?

  • Basically you just have to ask and your money will be refunded
  • Your energy company, however, will only refund money that they feel will not be required to pay future bills
  • Most energy companies will refund your money within just a few working days

Is it a wise move to get my money refunded?

  • You should always err on the side of caution and only request a refund if you have a substantial credit balance, leaving smaller credit balances on your account will act as a buffer against energy price rises or a cold winter
  • Your monthly payments are only changed annually so any increase in usage during the year may cost more than your total payments, a small credit balance left on your account is a better option

Looking for a financial adviser near you?

Do you need financial advice? An independent financial adviser can show you how to make the most of your money.

Simply find your nearest qualified and regulated adviser using the UK’s largest adviser search.