Your Energy Company Is Sitting on Your Money: How to Claim It Back

Millions of UK energy customers are sitting on credit balances they don't know about, or that their supplier is reluctant to refund. If you pay by direct debit, your supplier may have been overcharging you for months, building up a surplus in your account. Ofgem rules say you can claim that money back. Here's how.

How Energy Credit Balances Build Up

Energy direct debits are set based on estimated annual usage, spread evenly across 12 months. You pay the same amount each month, even though you use far less energy in summer than winter.

The problem? Suppliers often set direct debits too high, sometimes significantly. This means you pay more than you use, and the surplus sits in your account as a credit balance. Some customers have credit balances of £200, £300, or more without realising it.

Why Suppliers Keep Your Money

Suppliers have a financial incentive to hold your credit. The money earns interest while it's in their accounts. Some suppliers argue they need a "buffer" for winter bills, but Ofgem's rules are clear: any excessive credit balance must be refunded.

Your Right to a Refund

Under Ofgem's licence conditions, your energy supplier must:

1. Set your direct debit at a reasonable level based on your actual usage, not inflated estimates
2. Refund any credit balance within 10 working days of your request
3. Proactively review your direct debit and reduce it if it's too high
4. Not build up excessive credit in your account

Since January 2024, Ofgem has strengthened these rules. Suppliers must now conduct an annual review of every customer's direct debit and adjust it if the balance is materially above expected usage.

How to Check Your Balance and Claim a Refund

Step 1: Check Your Account

Log into your energy supplier's app or website. Look for your "account balance" or "credit balance." If it shows a positive balance (often displayed as "in credit" or with a minus sign before the amount), that's money the supplier owes you.

Step 2: Submit Accurate Meter Readings

Before requesting a refund, submit up-to-date meter readings (or check your smart meter is transmitting). This ensures your balance is accurate and based on actual usage, not estimates.

Step 3: Request a Refund

Contact your supplier and request a refund of your credit balance. You can do this:

• Through their app (most now have a "request refund" button)
• By phone
• In writing (use our Energy Bill Complaint Generator for a formal letter)

Your supplier must process the refund within 10 working days.

Step 4: Request a Direct Debit Review

While you're at it, ask your supplier to review your direct debit amount. If your balance keeps building up, your monthly payment is too high. Ask them to reduce it to match your actual usage.

What If They Refuse?

Some suppliers resist refunding credit balances. Common excuses include:

"You'll need it for winter."

Not if your current balance significantly exceeds your expected winter usage. Ask them to show the calculation.

"We need to keep a reasonable buffer."

Ofgem guidance says a buffer of one month's usage is reasonable. Anything more than that should be refunded.

"You need to wait until your annual review."

Wrong. You can request a refund at any time, and they have 10 working days to process it.

Escalation Steps

1. Complain formally to the supplier in writing
2. Quote Ofgem's rules - specifically Standard Licence Condition 21B.7 on direct debit levels
3. Give them 8 weeks to resolve your complaint
4. Escalate to the Energy Ombudsman - it's free, and they handle around 80,000 energy complaints per year

April: The Best Time to Claim

April is the ideal time to request a refund because:

• Winter billing is over - your account should reflect the winter period accurately
• Summer usage is lower - you'll build less credit over the coming months
• New price cap - the April price cap change is a natural point to reassess your direct debit
• Budget planning - start the new financial year with an accurate direct debit, not an inflated one

How Much Could You Be Owed?

According to Citizens Advice, the average overpaying household has a credit balance of around £160. But some customers, particularly those who've been on high direct debits for years, have balances of £500+.

Check your balance today. If it's more than one month's typical bill, you're probably owed a refund.

Switching Suppliers

If you switch energy supplier, your old supplier must refund any credit balance within 10 working days of your final bill. If they don't, chase them, and escalate to the Energy Ombudsman if needed.

Don't let your energy company sit on your money. Check your balance, claim your refund, and make sure your direct debit reflects what you actually use.