Finance experts are urging everyone in the UK to check their credit balance with energy companies by the end of the month.
After a mild winter, many customers who didn’t submit regular meter readings are more likely to be overpaying – with many able to claim back money being hoarded by energy companies.
According to data from Ofgem, energy giants were sitting on £3.3bn last year from the millions of customers whose accounts have built up credit.
The average household in credit had a balance of £215 during 2024.
The majority of customers pay for their energy by direct debit and pay the same amount – an average of £152 for a UK household – every month.
However, energy consumption is seasonal. This means households build up credit during the summer months when they use less energy then use up the credit during the winter months when usage is typically higher.
May is the ideal time to request a refund – it’s the time of year when most households should have the least credit after using up the excess over winter.
Greg Marsh, household finance expert and CEO of Nous.co, said: “No one should have a big credit balance built up in their energy account right now.
“Most suppliers won’t automatically refund you if you’ve paid too much, and could be unfairly holding on to money that you’re owed.
“If you’ve got a traditional meter and haven’t submitted a reading in a while, you’ll be paying bills based on estimates that could be significantly out after an unusually mild winter.
“Energy companies know how hard it is to stay on top of this stuff, and hope that we just put up with paying more than we need to.
“That’s exactly why we started Nous – to take on the burden of staying on top of things and help people avoid falling victim to these traps.”
You can see how much money you may be owed here.
Six tips to save money on your energy bills
Nous CEO Greg Marsh has shared his six tips on how you can save money and keep the energy firms from hoarding your cash:
Don’t have more than two thirds of your monthly bill in credit in May
If your credit balance this month is more than two thirds what you pay each month, you should ask for a refund. If you’re considerably above that level, your direct debit level is likely to be too high and you should ask your supplier to reduce it.
May is the best time to ask for a refund
Most of us build credit in the summer and use it up in the winter when the heating is on. May is the time you should have minimal credit – you’ll have used up the balance over the winter and be about to start building it up again.
Submit regular meter readings
If you don’t have a smart meter, make sure you send regular meter readings to your supplier. This means they’ll have accurate information about how much energy you use at different times of the year. Failing to do so means your supplier will estimate your usage, which could leave you in too much credit – or in debt.
Make sure your smart meter isn’t in dumb mode
Millions of smart meters in Britain aren’t working, meaning people are being charged based on estimated usage. This can lead to overpaying by hundreds. If readings on your bill are marked ‘e’, they’re estimates and could be wrong. You should submit regular manual readings if this is happening.
Don’t ditch the direct debit
If you think your direct debit is too high don’t ditch it entirely – it’s the cheapest way to pay for energy. Customers who pay by standard credit – cash or cheque – currently pay around £100 per year more than direct debit customers.
Save hundreds by switching
Most households are out of contract right now and could be hundreds of pounds better off each year through cheaper bills and cash rewards if they switch providers with Nous.co.
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