An investigation conducted by The Telegraph last year revealed that suppliers were increasing direct debits even when households had significant credit balances. Ofgem has been working on ways to better protect customers’ credit balances since 2018. However, they have decided not to implement proposals for automatic refunds at the end of the contract year and limitations on the amount of credit companies can hold. They have also abandoned plans to prevent customers’ credit balances from being used like an “interest-free company credit card.”
Uswitch is now urging consumers to check their credit balances and consider requesting a refund. Surprisingly, half of households (54%) are unaware of how to reclaim credit from their provider.
To claim a refund, bill payers should check their account balance online or over the phone to determine if they are in credit. In some cases, the supplier may automatically refund any money owed or decrease future direct debit payments. However, if this does not happen, customers should take the initiative to claim back their credit by contacting their supplier and specifying the amount they would like refunded. Providing an up-to-date meter reading is often required.
It is worth noting that suppliers may not refund customers with minimal credit balances during the summer months, as these customers are likely to utilize the credit when bills become higher in the autumn and winter. If a refund is denied, the supplier must provide a reason for the decision.
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