Research has found that over a third (38%) of people in permanent credit to their energy firms live in households with low incomes and may have cut back on energy use or other essentials because the direct debits set by energy firms are far too high.
While households are counting pennies to make ends meet, energy suppliers are sitting on billions of pounds of our cash through credit balances.
Personal finance experts and charities have called for more accuracy when companies calculate direct debit payments and argue any excess credit should automatically be paid back to customers in May before households start to rebuild credit on their accounts ready for the next winter.
But this money belongs to customers, and we have the right to claim it back. If you pay for your energy by direct debit, keep reading to find out how to get your money back.
You can do this yourself and do not need to bring in specialist legal help.
What is the Energy Credit Claim Back?
The Energy Credit Claim Back helps households reclaim their unused energy credit from energy suppliers. It’s an opportunity for the public to stand up to energy companies and suppliers who have not done enough to bring energy prices down, leaving households struggling while their industry has made an estimated £500 billion in profits since the energy crisis began.
This guide will give you some basic information you need to take action.
How does it work?
If you pay your energy bills by direct debit, you can claim back any credit you may have overpaid throughout the previous year.
That’s because your payments are averaged across the whole year and you start building up money in your account from Spring, when the worst weather and therefore higher energy use is over, to cover the cost of the following winter.
But energy firms may be overcharging you and are sitting on credit balances which are actually your money. Around a third (32%) of consumers always have credit on their accounts with energy firms, according to research with Opinium.
It is estimated that energy companies are holding just over £3 billion of credit.
Take action now
Different companies have different ways in which you can claim your credit back, but there are some basic principles you need to follow.
One thing that every supplier requires is that you have up-to-date meter readings. Most also offer additional assistance if you need help with the process.
Whoever your energy supplier is, the following important warnings must be understood in all cases:
- Do not cancel your direct debit. This may result in the price you pay for your energy going up.
- By taking back the credit you are owed, this may increase your direct debits going forward as many of the suppliers create an excess buffer, but you will be able to get that back if you are in credit after next winter.
- There is also a danger that if you haven’t supplied regular meter readings that you may not be in credit and could end up owing your supplier more money.
When you are ready to proceed, here’s what to do:
- Provide your new meter readings to your supplier, it is best to do this online, but it can also be done over the phone.
- Once you have done that, you may need to wait a few days for them to update your account. Make a note to check your account every few days to see when it has been updated.
- When your new balance is ready – and if it is still in credit – ask for a refund. Many firms will allow you to do this automatically online with a click of a button. Other firms may make you call or send a message to request the refund. Make a note of the date and time that you requested the refund.
- Ofgem, the industry regulator, says that energy companies must give you back the credit you’re owed within two weeks. If you have not had the credit refunded by then, get back in touch with your supplier.
- If you still do not have your credit, contact the supplier again and raise a complaint. Ofgem has advice on how to do this, and if that still does not work, contact the Energy Ombudsman.
In May 2024, the Warm This Winter campaign produced a “supplier by supplier” guide which can be downloaded here.