Martin Lewis has urged Britons to check their energy bills, stating that now is the 'perfect' time to 'stop the rip-off' and potentially claim £100s back. The warning comes as energy firms are reportedly sitting on more than £3 billion of customer credit due to the way Direct Debits are collected.
Most suppliers estimate annual energy costs and divide them into 12 equal monthly payments. While this aims to balance out higher winter usage, Lewis argues that 'implementation' often fails. '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 wrote on his MSE website.
Lewis explains that estimates can be skewed if customers do not provide regular meter readings or have a smart meter. With many households reducing energy usage due to soaring costs, annual estimates may also be inaccurate. He advises that early May is the ideal 'baseline' to check credit, as winter debt typically stops increasing by then.
If your bill is up to date, your Direct Debit is about right, you have submitted a meter reading, and you are still in credit (e.g., more than one month's Direct Debit), you should request your credit back. Energy suppliers must take 'reasonable steps' to ensure Direct Debit levels are fair and must refund overpayments upon request or explain clearly why they will not.
If a supplier refuses, customers can make a formal complaint and escalate it to the Energy Ombudsman for free. Policies vary by firm: British Gas will reduce Direct Debits if in credit at the end of the plan year, EDF requires an up-to-date meter reading, and E.on Next will refund upon request but does not do so automatically.
