Energy Refund Explained
Many people across the UK are owed money by their current or previous energy suppliers. However many of these people either do not know that they are in credit or do not know how to go about getting a refund.
Around 50% of UK households are in credit to their gas or electricity supplier. It is estimated that the total amount owed to energy consumers by providers is in excess of £1.2bn. This translates as £86 being owed to every 1 in 2 customers.
Ofgem, the regulator for gas and electricity markets in the UK, have put in place rules that make it easier than ever to reclaim the money that you are owed. They have the power to compel your supplier to pay you back as quickly as possible.
Am I owed money by my energy supplier?
It is easy to find out if you are currently in credit to your energy supplier. All you need to do is look at your most recent bill from you gas and electricity company. On your bill it will give you details about whether you are owed money and if so, how much.
If you have an online account then checking is even easier, just log in and check your account balance.
What if I have changed supplier?
If you are with a new energy supplier and are still owed money by your previous provider, you can still claim this money back.
The big 6 energy suppliers in the UK promised in 2014 that they endeavoured to pay back the £153m credit they owe their customers.
The initiative is known as the “MyEnergyCredit” campaign. It aims at making sure customers see repayment for the debts that their energy supplier have accumulated. They will even help customers who failed to provide a final meter reading before switching suppliers.
Why am I in credit?
The reason that it is possible for you to fall into credit with your energy supply is that your bills are based on estimates. This means that when your direct debit is taken, it is not necessarily an accurate representation of your energy consumption. Instead, it is based on a rough average that it taken from your normal usage. This means that you can often be over charged by your energy company.
If too much has been taken on your direct debit, you can claim it back by getting in touch with your bank or energy supplier.
What do I do to get a refund from my current supplier?
If you are currently in credit with you energy provider, then all you need to do is get in touch with them and ask for a refund. It won’t normally take long for them to get the money back to you.
You will need to take a meter reading before you get in touch, so that they know exactly how much energy you have been using.
What if I am owed money by a previous energy supplier?
You energy supplier is supposed to refund you all the money that they owe you when you switch to a new provider. In spite of this, many have failed to do so. If you are owed money by your old energy provider, then you should get in touch with them as soon as possible to claim back the money that you’re owed.