Energy account in credit: how to claim energy credit refunds - from Octopus, Ovo, British Gas, EDF, and more

Martin Lewis has said May is the perfect time to stop the ‘rip off’ of firms sitting on credit

Energy account in credit: how to claim energy credit refunds - from Octopus, Ovo, British Gas, EDF, and more

Campaigners are encouraging households to reclaim credit balances from their energy suppliers to "reset" direct debit payments, which remain high despite falling prices.

The Warm This Winter campaign emphasises that customers should not cancel their direct debits, as this could result in higher unit costs for households.

Instead, they recommend resetting energy payments in early summer, which is considered the ideal time for adjustments for the upcoming year.

Statistics indicate that UK energy suppliers are holding over £3 billion in customer credit, with nearly a third (32%) of UK households maintaining credit balances throughout the year.

Warm This Winter estimates that in 2023 alone, firms likely earned at least £159 million in bank interest from these customer credit balances.

Research by the campaign suggests that 38% of those in permanent credit live in households with low incomes, and who may have cut back on energy use or other essentials because their energy direct debits are too high.

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It comes amid forecasts that the average household energy bill will fall by another 7% in July when the latest change to Ofgem’s price cap takes effect.

Energy consultants Cornwall Insight said they expect the typical household’s energy bill to fall from £1,690 a year currently to £1,574 on July 1. This would be £500 less than the cap in July last year, when it was £2,074.

Martin Lewis, the founder and chairman of MoneySavingExpert.com, has also recently pointed out that while it is sensible to build up credit in the summer months to pay for higher energy use in the winter, May is the perfect time to stop the “rip off” of firms sitting on billions of pounds of customer credit.

Warm This Winter spokeswoman Fiona Waters said: “Energy companies are sitting on over £3 billion of bill payers’ money whilst providing an appalling service in many cases and making billions in profits.

“The Big Energy Claim Back is a way people who pay by direct debit can issue a wake up call to companies that customers are not prepared to be ripped off anymore and demand energy suppliers provide a fit for purpose service, whether that’s smart meters that actually work, customer service centres that pick up the phone, fair tariffs, an end to extortionate exit fees and just basically doing their job.”

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “It’s highly concerning that low income households may have been charged too much on their direct debits, leaving them to struggle to make ends meet during the cost-of-living crisis.

“With the huge sums being earned in interest by the energy firms, the least they can do is make sure that credit balances are not running too high, direct debits are set appropriately and the interest they have earned is either paid back to consumers or used to cancel energy debt of those most in need.

“Of course, customers should use caution when claiming back as their direct debits may be increased by their energy firm, but making sure a supplier has a regular meter reading is the best way to ensure accurate bills.”

Warm This Winter has launched a guide which includes advice and guidance on how consumers can claim back their credit.

The group has issued the following guidance for consumers:

• Ensure your meter readings are up to date.
• Check your energy bill or online account and see whether you are in credit or debit.
• If you are in credit, contact your energy company to request it back.

The process varies from company to company but a guide to find out how to claim back credit from the major suppliers is available on the Warm This Winter website: warmthiswinter.org.uk/big-energy-credit-claim-back.

Before you take action, check that you are able to afford to pay more on monthly bills as energy firms may increase your direct debit if you withdraw your credit.

If your energy firm refuses to refund your credit, you can take up a case against them with the Energy Ombudsman: energyombudsman.org