MARTIN Lewis has warned millions of households to check if they’re due hundreds of pounds back in unclaimed energy credits.
In a new blog post on MoneySavingExpert.com and on yesterday’s episode of ITV’s Good Morning Britain, Martin said that now is the perfect time to get your money back.
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But he said that households shouldn’t assume that if they’re in credit, they’re owed cash.
This is because the way monthly direct debits are set is more complicated than this.
Typically, your energy company will work out the cost of your energy for the year ahead and divide this into 12 equal payments.
However, to smooth things out over the period and avoid high bill shocks in the winter, customers are more likely to build up credit during the warmer summer months.
In his blog, Martin Lewis wrote: “Monthly direct debits are based on an estimate of usage, and these estimates can be dire, leaving many unnecessarily overpaying with too much credit or underpaying and getting into energy debt.”
So customers who have a high amount of credit right now would be right to query this and ask for a refund, according to the MoneySavingExpert.
Martin Lewis said on Good Morning Britain: “You should be on £0 worth of credit from January.
“But as you go through the months, you’ll start to build up your debt until you get to this week (May 1-7) when you’ll start to pay off that debt and move into credit.
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“This peaks in November before it starts to go down again. So why is this week important?
“Well, because this is the week in the year where you should have the least amount of credit.
“Exactly how much you’ll have depends on when you started with your energy firm – but effectively there’s no reason to be in credit right now because this is the lowest point in the cycle.”
However, it’s important to note that if you started the cycle at a different point you might not take have any energy credits across the 12 months.
But effectively Martin said that there is no reason for anyone to be in credit right now.
“If you’re two or three months in credit right now, that’s too much,” he said.
So if you’re in a lot of credit now you can request to get your cash back – we’ve explained how below.
How can I request a credit refund?
First, make sure your energy firm has the most up-to-date meter reading.
If your reading doesn’t match the energy use they have down for you, chances are they’ll want to update your monthly bills as you may not be paying the right amount anyway.
But if your meter readings are up-to-date and f you’ve been in credit for more than one month ask your energy firm to return the funds.
Each energy supplier has its own process for customers wishing to get a credit refund.
For example, British Gas rules state that it will always hold a £75 energy credit on live accounts.
The supplier will only refund you if there’s £5 or more left over after it’s put a £75 credit towards your bill.
Customers can request a refund by logging into their online account.
Ovo Energy customers can request a refund if their credit is at least £25 higher than one month’s direct debit.
After submitting a meter reading to your online account customers should head to the payments page and click apply for a refund.
Check with your energy provider to find out how to request your money back.
