Millions of households across the UK are unknowingly sitting on a hidden hot weather cash windfall of £212, as energy suppliers hold onto more than £3 billion of customers' money, according to regulator Ofgem.
Credit Balances on the Rise
This averages out at a credit balance of £212 per household for the roughly 17 million homes that pay for their energy by fixed direct debit. This figure is up from £206 at the same time last year.
Ben Gallizzi, energy expert at Uswitch, commented: "More than half of UK households are coming out of the coldest time of year with credit in their energy accounts. At this time of year households should generally have used up most of their credit over the colder winter months. However, it is advisable to keep about two months' worth of payments in energy credit to cover higher winter bills ahead."
He added: "With energy prices rising in July, households with more than two months of energy credit could consider leaving some of it with their supplier to take some of the sting out of winter bills later this year."
How to Claim Your Refund
Each supplier has its own policy for refunding credit balances. Here is what customers need to know:
British Gas
If you are in credit at the end of your 'plan year', British Gas will reduce your Direct Debit. You can ask for a credit refund at any time; it is not automatic.
EDF
If you are in credit at your account review with EDF, the credit will be used to reduce your Direct Debit. You can request a refund but must provide an up-to-date meter reading. If you have built up a significant credit balance, EDF may proactively contact you to suggest you request a refund.
OVO
You can request a refund if you have more than one month's Direct Debit as credit in your account. You will need to have submitted a meter reading within the last 28 days.
Octopus
You can request a refund at any time, but you need to provide a meter reading and have been billed in the last 14 days, so the company can check that the refund will not leave you likely to get into significant debt on your account.
What About EON?
EON customers should check their account online or contact customer service to inquire about refund policies, as specific details were not provided in the original report.
