Households who pay for their energy by direct debit are being told now is the "perfect" time to act and get money back if they have built up a lot of credit on their accounts. Millions of direct debit customers will generally pay a fixed amount every month regardless of how much energy they use.
As energy usage decreases in spring and summer, it means customers pay more than what they use. This allows them to build up credit to be used in winter, ensuring bills don't rocket in the colder months.
But experts argue some households have way too much money being stored in credit and are entitled to ask for it back. Martin Lewis' Money Saving Expert team say now is the perfect time to check how much credit you have.
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They say more than a month's bill worth in credit is "certainly a lot". While it's always a good idea to keep some credit for when energy usage increases later in the year, some customers have hundreds of pounds worth which can be claimed back.
Energy companies should pay back any credit if a customer asks for it. If they refuse, customers have the right to ask why and potentially appeal the decision. MoneySavingExpert said: "Energy firms are sitting on over £3 billion of our cash - around £180 per household. And a decent whack of that should be back in people's pockets.
"This can be tricky to do as firms throw up lots of reasons to hold on to our cash, one of which is timing, but check right now, and you can defeat the timing excuse - making it all a lot easier." They continued: "Monthly direct Debits aim to smooth out seasonal usage, so you pay the same year-round.
"That means you build up credit in summer, and use it, or build up debt, in winter. Crucially, now - early May - is the bottom of the cycle, so you shouldn't have much credit. So if you've done an up-to-date meter reading (or your smart meter has), your bill is up to date, and your direct debit is the right level, now is the perfect time to see if you've too much energy credit.
