Millions of UK households could be due payouts worth potentially hundreds of pounds – but to get the cash, they will need to act. According to research from Uswitch, 15million households are owed a total of £3billion in energy credit from their suppliers.
According to experts, the beginning of May is the perfect time to check the level of energy credit on your energy account if you pay by direct debit. This is when you should have the minimum credit in your account, so if you have too much, you could get some back.
With direct debits, your energy supplier will take your annual costs and divide them by 12 -this smooths it out so you are not paying madly high costs during the winter months. Households should start rebuilding their credit levels during the spring and summer, and with this concept, you should have peak credit in November. However, it’s important to note that this will depend on how much your direct debit is and how much energy you use.
Uswitch says each household’s credit should be around two months of their direct debit. However, one in ten households has credit balances over £300, and 4% have more than £500. Yet only three in ten households plan to ask for some cash to be returned.
Get insights into all aspects of the budget with the Mirror’s newsletters direct to your inbox.
Our politics newsletter is sent out twice daily with the latest UK & world political news, along with leading opinion and analysis.
Our money newsletter has all the latest advice, money saving tips and financial news from the sector.
The Mirror’s main newsletter brings you the latest news, exciting showbiz and TV stories, sport updates and essential political information and is sent to you every morning, at 12noon and every evening.
Pick which suits you best by signing up here.
Edinburgh is the “UK’s energy-credit capital” according to the comparison and switching service, with the average home storing £224 with their supplier, while Belfast has the least, at only £127. London has the highest proportion of households in credit.
Uswitch.com is advising consumers to check their energy account and consider reclaiming any excess amounts of credit, which is generally any amount above two months’ worth of payments.
Elise Melville, energy expert at Uswitch.com, said: “More than half of UK households are coming out of the coldest time of year with credit on their accounts. During the energy crisis we advised households to leave energy credit with their supplier to protect against rocketing prices.
“However, with the price cap coming down from those highs of the energy crisis, consumers with excessive credit may want to consider reclaiming some of it. If you have a high credit balance, you may want to ask your supplier to check that your direct debit is set at the right level for the amount of energy you use.
“Although falling energy bills is good news, they are still high by historic standards and unfortunately, a significant number of people are in debt to their provider. We recommend that anyone who is worried about their energy bills should contact their supplier, which can offer advice and support. To ensure you are being billed accurately, make sure you submit regular meter readings to your supplier if you do not have a smart meter.”
For all you savvy savers and bargain hunters out there, there’s a golden opportunity to stretch your pounds further. The Money Saving Club newsletter, a favourite among thousands who thrive on catching the best deals, is stepping up its game.
Simply follow the link and select one or more of the following topics to get all the latest deals and advice on: Travel; Property; Pets, family and home; Personal finance; Shopping and discounts; Utilities.
UK average – £198 (Households in energy credit: 54%)
WHATSAPP GROUP: Get money news and top deals straight to your phone by joining our Money WhatsApp group here. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.
NEWSLETTER: Or sign up to the Mirror’s Money newsletter here for all the best advice and shopping deals straight to your inbox.
At Reach and across our entities we and our partners use information collected through cookies and other identifiers from your device to improve experience on our site, analyse how it is used and to show personalised advertising. You can opt out of the sale or sharing of your data, at any time clicking the “Do Not Sell or Share my Data” button at the bottom of the webpage. Please note that your preferences are browser specific. Use of our website and any of our services represents your acceptance of the use of cookies and consent to the practices described in our Privacy Notice and Cookie Notice.
