18 October 2023 , 08:38
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Martin Lewis has urged households to check if they’re owed hundreds or even thousands of pounds in energy bill credit.
It is normal to use more energy in the winter months when it is colder, compared to the summer when you won’t have your heating switched on. If you pay by direct debit, this means you’ll normally have built up energy credit during summer, ready for the more expensive winter months.
But if you’re disproportionately in credit, you can ask your supplier to give you some of the money you’ve accumulated back. Writing in the latest MoneySavingExpert.com newsletter, Martin said: “If you pay by monthly DD, at this time of year it's appropriate to have a couple of months' worth built up as credit, so check how much you've got.
“If it's a lot more, then as long as your DDs are right, see how to get your energy credit back. If you're in debt at this point of the year, your DD probably needs to be higher or you'll build up the debt.”
Energy regulator Ofgem states suppliers must refund accumulated credit, though it doesn't say how much should be given back. Citizens Advice suggests “if the amount you’re owed is more than the amount you pay as a monthly direct debit, you might want to claim back the difference”.
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But it reminds households that “you should probably leave money on your account during summer and autumn” to cover higher energy costs in winter. To get a refund, contact your energy supplier directly. You’ll likely need to give an up-to-date meter reading.
If your supplier says they won’t give you a refund, they must explain why. You can complain to the Energy Ombudsman if you think you’ve been unfairly refused a refund.
The Ofgem price cap fell from £2,074 a year to £1,923 for a typical dual fuel home paying by direct debit on October 1. This figure is based on what an average household who uses gas and electricity would pay based on the rates allowed under the cap.
Around 29 million people are on the price cap - but it is important to remember there isn’t actually a total cap on what you can pay for energy. The Ofgem price cap sets a limit on what suppliers can charge for each unit of gas and electricity you use, as well as the standing charges.