Customers of major energy suppliers like British Gas, Octopus Energy, EON Next, EDF Energy, and OVO Energy could be entitled to claim refunds of up to £500 if they have been paying more than necessary into their energy accounts. It has been revealed that around 16 million households across the UK currently hold credit balances in their energy accounts.
This surplus has accumulated due to direct debit payments that exceeded actual winter energy usage. Statistics show that one in eight customers have over £300 in credit, while approximately four percent have more than £500 saved with their supplier.
Ben Gallizzi, an energy expert at Uswitch, explained, “More than half of UK households are ending winter with credit left in their energy accounts. Normally, customers would use up most of their credit during the colder months. However, it’s wise to maintain about two months’ worth of payments as credit to prepare for future high bills.”
With energy prices anticipated to rise again in July, households holding more than two months of credit might want to keep some funds with their supplier to offset upcoming winter costs.
Success stories abound: Clare, a subscriber to Money Saving Expert, shared her experience on Twitter. She discovered she had nearly £960 in credit after paying £147 per month by direct debit. Upon contacting her supplier, her payments were reduced to £80, and she received a £570 refund. Another customer, Neal, reported receiving a £900 rebate from British Gas within just four days after overpaying for 11 months.
Martin Lewis, the well-known money-saving expert, highlighted that energy suppliers are obligated under Condition 27 of their licences to ensure direct debit payments are set fairly and properly explained. Customers are encouraged to call their suppliers to review their payments and request refunds of any excess credit.
“If a refund request is denied without clear justification, customers can pursue complaints through Resolver, a service that escalates unresolved disputes to the Energy Ombudsman,” Lewis added. He also noted that some suppliers automatically refund excess credit annually, but advised checking to be sure.
By reviewing direct debit payments and claiming owed credit, energy customers can avoid overpaying and potentially receive substantial refunds directly from their suppliers.