Consumer champion Martin Lewis has issued an urgent plea to nearly one million UK households, urging them to take immediate action to avoid missing out on a significant energy bill refund.
The Money Saving Expert founder revealed that approximately 800,000 homes with traditional prepayment meters could be owed a collective £150 million following Ofgem's latest price cap reduction that took effect in April.
Why You Need to Act Before June 30th
The critical deadline of Sunday, 30 June is fast approaching for households to submit their meter readings and claim what they're owed. Without taking action, many risk losing their rightful refund entirely.
'This is a use-it-or-lose-it situation,' Martin Lewis emphasised during his latest podcast. 'If you don't provide your reading, that money effectively disappears into the ether of the energy companies' profits.'
How the Refund System Works
The issue stems from the energy price cap adjustment that reduced rates from 1 April. However, most traditional prepayment meter customers pay a fixed monthly amount that may not reflect their actual usage since the change.
Households that have overpaid since April are effectively in credit with their energy providers but must provide a meter reading to trigger the refund process. The average household is owed around £180, though amounts vary depending on usage and payments.
Step-by-Step: How to Claim Your Refund
- Locate your traditional prepayment meter - these require manual readings and key top-ups
- Take a clear reading of all relevant meters (electricity and gas)
- Submit readings to your provider through their app, website or phone service
- Keep a record of your submission and meter readings
- Expect your refund to be applied to your account or issued as a cheque
Martin Lewis specifically highlighted that this warning applies to traditional prepayment meters, not smart meters which automatically send readings to suppliers.
The Bigger Picture: Energy Justice
This situation highlights what consumer advocates call the 'prepayment penalty,' where those using traditional prepayment meters – often among the most vulnerable households – face higher costs and more administrative hurdles than those with direct debit arrangements.
Ofgem's price cap reduction was intended to provide relief to all households following falling wholesale energy prices. However, without proactive claims, the benefits may not reach those who need them most.
Energy companies are obliged to process refunds for valid claims, but the responsibility lies with consumers to initiate the process before the 30 June cutoff.
