Millions of households across the UK could be entitled to a significant refund on their energy bills, with an average of £255 potentially waiting to be claimed. This opportunity arises from a simple check on account credit, guided by a crucial two-month rule.
The £3 Billion Unclaimed Energy Credit
According to the industry regulator, Ofgem, a staggering £3.09 billion of customer credit is currently sitting unclaimed with energy suppliers. This vast sum represents money that households have overpaid, typically through fixed direct debits that don't perfectly match fluctuating seasonal usage.
Financial journalist and consumer champion Martin Lewis has been vocal in highlighting this issue. The 52-year-old founder of MoneySavingExpert.com pointed out that energy firms are effectively holding over £3 billion of their customers' money. He has provided clear guidance on how bill-payers can reclaim what is rightfully theirs.
How the Two-Month Rule Works
The key advice centres on a two-month rule. Customers who pay by direct debit build up credit during warmer months when energy consumption is lower. This credit is intended to cover higher usage in winter.
Martin Lewis advises that you should only consider requesting a refund if your account holds more than two months' worth of direct debit payments as credit. He identifies November as the peak time for this built-up credit. At that point, being in credit equivalent to around two-and-a-half months of payments is considered normal.
His step-by-step guidance is clear:
- First, ensure your meter readings are up to date to get an accurate picture.
- Check whether you are in energy credit or debt and review your account's historical graphs.
- If your credit substantially exceeds the two-month benchmark, contact your supplier to request the excess back.
When is the Best Time to Check?
Lewis suggests two optimal times for this financial health check. May is one, when a typical account should have little credit or be slightly in debt. Finding a large credit balance then is a strong indicator of overpayment.
The other key period is November, as mentioned. He cautions bill-payers to "always add a month or so wriggle room" and not to make the calculation too fine, allowing for price changes and usage variations.
How to Claim Your Refund
The process to reclaim your money is straightforward. Once you have confirmed you have excess credit, you simply need to contact your energy supplier directly and ask them to return the cash. Suppliers are obligated to review such requests and return any unjustified credit.
With billions sitting in unclaimed funds, this advice from Martin Lewis and the data from Ofgem serves as a crucial reminder for consumers to proactively manage their utility accounts and ensure their money is working for them, not their energy provider.
