Millions of UK households may unknowingly hold significant credit on their energy accounts, with average refunds potentially reaching £872.
In the context of rising living costs, this unclaimed credit could represent a valuable opportunity for financial relief. Energy suppliers, however, do not issue refunds automatically, making it essential for customers to take the initiative.
According to reporting by GB News, many consumers are unaware of the scale of overpayments sitting unused in their accounts. Experts are urging individuals to review their energy bill balances before the end of May. The process, described as “so easy” and “only takes five minutes to claim”, could lead to swift refunds.
Mild Winter Leaves Accounts in Surplus
Following an unusually mild winter, many customers consumed less energy than usual while their direct debit payments remained unchanged.
This mismatch has resulted in approximately 15 million households being in credit, with some holding up to £500, according to Uswitch. Despite this, only 31 percent of consumers plan to reclaim what could be significant overpayments.
Gordon Wallis, a renewable energy expert at Your NRG, explained:
Many customers don’t realise they’re effectively lending money to their energy supplier.
Eligibility and Refund Guidance
Consumers can apply a basic rule of thumb to assess refund eligibility. Nous.co recommends the “two-thirds rule”: if a customer’s credit balance exceeds two-thirds of their usual monthly payment, they may be overpaying. For example, a household with a £100 monthly bill and £400 credit would likely qualify.
Greg Marsh, CEO of Nous.co, said:
No one should have a big credit balance built up in their energy account right now. Most suppliers won’t automatically refund you if you’ve paid too much, and could be unfairly holding on to money that you’re owed – He added
Energy companies know how hard it is to stay on top of this stuff, and hope that we just put up with paying more than we need to.
MoneySavingExpert.com also advises that holding more than one month’s worth of credit in May is generally enough to justify a refund request.
Story of a Successful Claim: £872 Refunded
Chris Matthewman, 39, from Basildon, Essex, discovered in January that he was £1,100 in credit on his dual-fuel tariff with E.ON, paid by direct debit. He shared:
I phoned E.ON and asked if I could take the credit, saying it was my money at the end of the day.
After submitting a meter reading, E.ON approved a £872 refund, which was deposited in his bank account three weeks later. His monthly direct debit was also reduced from £200 to £130.
The refund had a major financial impact. Chris and his partner were on a Debt Management Plan scheduled to finish in September 2024, but the refund, combined with other cost-saving efforts, allowed them to pay off their debts by April 2024—five months early, saving about £5,000 in payments.
He reflected
At the time, we were in a Debt Management Plan and it was meant to end in September 2024. But with the £872 plus with cutting costs in other areas, we finished it in April 2024. So we saved five months of payments which in turn was about £5,000.
Having the little impact (of the refund) saved us more in the long run – he added.
Practical Tips for Reclaiming Your Money
According to experts, claiming a refund is straightforward. Customers should contact their supplier using details on a recent bill or via their online account. Submitting an up-to-date meter reading is usually required for any adjustments to be processed.
Chris Matthewman now monitors his usage regularly.
I do a meter reading every couple of months now just to see if we are paying too much or if we’re not paying too much. I would always recommend to do it just so you can have a bit of breathing space.
