Martin Lewis has urged Britons to scrutinise their energy bills, saying now is the 'perfect' opportunity to 'stop the rip-off' and potentially reclaim hundreds of pounds. The money-saving expert highlighted that energy companies are holding more than £3 billion of consumers' funds due to the way direct debits are processed.
Typically, providers calculate yearly expenses and split them into 12 equal monthly payments. While the principle is sound, Lewis warned that the 'implementation' can falter. 'Monthly direct debits are based on an estimate of usage. If the estimates are wrong, which is common, they can leave some unnecessarily overpaying with too much credit or others getting into too much debt,' he explained on his MoneySavingExpert website.
Inaccuracies can arise if customers fail to submit regular meter readings or lack a smart meter. With households cutting back on energy use due to high prices, annual estimations may be off. Lewis suggests that early May is the ideal 'baseline' period to have minimal credit. If your bill is up-to-date, your direct debit is approximately correct, you have taken a meter reading, and you are still in credit (more than one month's direct debit), you should consider reclaiming your credit.
Energy suppliers must take 'reasonable steps' to ensure direct debit levels are fair. If you have excess credit, contact your supplier to inquire why. If you request a refund, they must comply or provide a clear reason for refusal. 'If they don't, you can make a formal complaint, and if it rejects it, escalate it to the Energy Ombudsman for free, which can adjudicate,' advised Lewis.
Refund policies vary. British Gas propose reducing direct debit if a credit balance persists at the end of the 'plan year', but consumers retain the right to request a refund anytime. EDF Energy requires a recent meter reading first, while E.on Next accepts requests but does not issue automatic refunds. Policies of other firms can be checked online.
