The MoneySavingExpert said now is the ‘perfect time’ to claim a slice of the £3bn cash pile energy companies are ‘sat on’
Martin Lewis insists that now is the ideal moment to check whether you’re due a refund. During his appearance on ITV’s Good Morning Britain (GMB), Martin advised those who pay their energy bills in monthly instalments to conduct an essential check from today (May 14).
He suggested that they might be sitting on a potential windfall they weren’t aware of. Most people consider May to be the ‘perfect’ time to investigate this, too. Martin explained that paying for your energy via direct debit often results in a credit-debit seesaw with your provider, as they estimate your annual usage. This can lead to overpayment in some months and underpayment in others.
This fluctuation typically peaks and troughs during summer months when less heating is needed. It is then balanced out in the winter months when usage increases, reports the Manchester Evening News.
Martin claimed that energy firms are “sitting on about £3 billion worth of credit” – but you could claim your share of that back into your account. Instead of a refund, the credit could be offset against future bills, according to British Gas, reducing your upcoming energy costs.
The MoneySavingExpert founder informed GMB viewers that customers who pay monthly are most affected. It’s crucial to either have a functioning Smart Meter or to have taken accurate meter readings yourself.
Martin highlighted that May is typically the period when customers will find themselves with the highest level of debit or credit on their energy account. He advised: “If you go and check your in credit, and you have substantial credit on your monthly direct debit energy account, you should be asking for it back.”
To keep things straightforward, he used a hypothetical scenario where an individual has £500 credit but only pays £200 per month for their energy services, suggesting that one might opt to reclaim a month’s worth of payments while maintaining “a buffer” in reserve. To make a claim, contact your supplier and tell them how much credit you’d like them to refund to you. Their contact details should be on your bill or online account.
When Susanna Reid asked, “What if [the energy company] says no?” Martin pointed out that the law is on your side. He said that under British law, consumers are entitled to “to a fair direct debit, that [energy companies] should justify if it is too high, and they should not keep an excess amount of your credit” referring to Condition 27 of the Gas and Electricity Licensing Act.
Martin recommended taking a robust approach, saying: “If you have done your research properly, I would make a formal complaint for the money back. If they refuse, I would take them to the Energy Ombudsman Service where I’d also ask for some compensation for the time and hassle.”
The Energy Ombudsman is a free, independent service that helps resolve disputes between consumers and energy suppliers. To use the service, you’ll typically need to have already contacted your supplier and either be unhappy with their resolution or have not received a response within eight weeks.