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Payouts of £65 per household loom for supplier credit balance hoarding

17 Mar, 21

The energy regulator has revealed a crackdown on household suppliers to prevent them hoarding credit balances for customers who pay by direct debit.

Ofgem’s examination of the issue, a bugbear of many bill-payers, found that £1.4bn of customers’ money was languishing in the hands of companies in 2018 through overpayment.

It said a series of reforms would lead to, at least, that sum being returned to customers – the equivalent of £65 per household on average – though a consumer group said it had seen evidence of credit balances up to £1,000.

The watchdog explained that suppliers are supposed to adjust fixed monthly payments, which are based on estimated energy consumption, over the course of a year.

It is to eliminate disparities caused by lower energy use during summer compared to winter.

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