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
