Finance expert’s five tips for energy customers to reclaim energy credit as suppliers are ‘sitting on billions of pounds’

• Millions of UK households may be overpaying for energy after a mild winter

• Suppliers are sitting on billions in unused customer credit, Ofgem data shows

• Most people pay by direct debit, leading to seasonal overpayments

• Nous.co urges households to check their account balances this month

• Many don’t submit meter readings regularly, increasing the risk of overpaying

Households are being encouraged to check their energy account balances before the end of the month in order to reclaim any credit they may be owed by suppliers.

Customers who don’t regularly submit meter readings are especially at risk of overpaying. 

Research by Nous.co shows that almost half (48%) of UK households skip monthly readings, and 11% never submit them at all.

Energy firms were holding on to a staggering £3.3 billion in customer credit last year, according to Ofgem. In 2024, the average household in credit had £215 sitting in their account.

Most people pay for energy by direct debit – typically a flat £152 each month. But because energy use is seasonal, this often leads to overpayments in warmer months when usage drops, and credit builds up to cover higher winter bills.

May has been hailed as the perfect time to take stock because most households will have used up their winter credit by now.

Nous advises that if your current credit balance is more than two-thirds of your monthly payment, you may be overpaying. It’s worth requesting a refund or asking your provider to lower your direct debit.

Finance expert shares five tips on how to save and keep energy firms from hoarding your cash

Greg Marsh, household finance expert and CEO of Nous.co, has outlined these five tips on energy credit

1. Don’t have more than two thirds of your monthly bill in credit in May

“If your credit balance this month is more than two thirds what you pay each month, you should ask for a refund. If you’re considerably above that level, your direct debit level is likely to be too high and you should ask your supplier to reduce it.”

2. May is the best time to ask for a refund

“Most of us build credit in the summer and use it up in the winter when the heating is on. May is the time you should have minimal credit – you’ll have used up the balance over the winter and be about to start building it up again.”

3. Submit regular meter readings

“If you don’t have a smart meter, make sure you send regular meter readings to your supplier. This means they’ll have accurate information about how much energy you use at different times of the year.

“Failing to do so means your supplier will estimate your usage, which could leave you in too much credit – or in debt.”

4. Make sure your smart meter isn’t in dumb mode

“Millions of smart meters in Britain aren’t working, meaning people are being charged based on estimated usage. This can lead to overpaying by hundreds.

“If readings on your bill are marked ‘e’, they’re estimates and could be wrong. You should submit regular manual readings if this is happening.”

5. Don’t ditch the direct debit

“If you think your direct debit is too high don’t ditch it entirely – it’s the cheapest way to pay for energy. Customers who pay by standard credit – cash or cheque – currently pay around £100 per year more than direct debit customers.”

'Most suppliers won't automatically refund you'

Gregg added: “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.

“If you’ve got a traditional meter and haven’t submitted a reading in a while, you’ll be paying bills based on estimates that could be significantly out after an unusually mild winter.

“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.

“That’s exactly why we started Nous – to take on the burden of staying on top of things and help people avoid falling victim to these traps.”