What does energy bill credit mean?
If you pay for your gas and electricity by direct debit, you may, at times, find your energy bill in credit.
That is because, regardless of your energy consumption in a particular month, you pay the same amount monthly. This is designed to spread your energy costs across the year.
The advantage of spreading your costs out is that you’re less likely to struggle managing large bills in the winter because your overpayments in the summer months should cover the increased costs of the colder ones. However, you may find that this leaves your energy account in credit at certain times.
But you don’t need to let the money just sit there. Find out how much you could be owed and what to do about any energy bill credit you might have.
What happens to my energy credit when I switch energy supplier?
You may be looking to compare gas and electricity deals with the aim of switching your energy provider. If you’re currently in credit with your existing energy company, you might be wondering, “What happens to my credit if I switch to another energy provider?”
Part of the switchover process includes taking a meter reading on the day of your switch. You send this to your old supplier, which will produce a final bill based on this reading. The supplier will then apply any credit you have to this charge, and either send you a bill for any outstanding amount or refund the leftover credit to your bank account.
If you find your electricity or gas bill in credit but you haven't received a refund, you can contact your old supplier to ensure it refunds your energy bill credit to you.
Can I get a refund without switching?
Yes, you don’t have to switch suppliers to get your credit returned to you. However much you have sitting in credit with your supplier, you can ask for it back as well as ask that your monthly direct debit amount be reviewed.
Each energy supplier will have its own process for administering refunds. Some suppliers allow you to request a refund through an online form (they may even suggest a suitable amount that ensures you’re not left short later in the year). Others may require you to put in your refund request over the phone or by mail. Either way, it’s your money and they are required to pay it back to you.
Can I claim my energy credit from a previous supplier?
If you think you might still be owed money by an energy supplier you no longer use, and you think you've missed your window after switching or it's been a few years, you actually have a very good chance of getting it back.
However, it'll be trickier as you won't be able to provide a meter reading. In fact, you will need to rely on your old energy supplier's data to help you out unless you have all your statements kept handy.
How to claim credit from an old supplier
1. Contact your old energy supplier and tell it when you were its customer (start and end dates) before explaining that you think you were overcharged or had credit that wasn’t refunded when you left.
2. If its customer service is helpful then it should be able to locate your file and see if there was an outstanding credit on the closing balance.
It's worth noting that energy suppliers are obligated to refund any money that you are owed. Ofgem, the energy regulator, has put measures in place to ensure that every supplier credits customers.
In many cases, energy suppliers have failed to notify customers of money they are owed, so you may need to chase them up to make it happen, but ultimately, it’s your money.
If a supplier refuses to cooperate and won’t give the money back that you’re owed, then you can take your issue to the Energy Ombudsman who may decide to take your case on.
I don’t remember the name of my energy supplier. Can I still get a refund on my energy credit?
Yes, but you might need to do some extra digging around to get the information you need. Try one or more of the following:
- Try to find an old energy bill from the time in question. Use this to identify your supplier, who you can then contact.
- Check old bank statements from the time you were with the supplier. Their name should appear, allowing you to get in contact.
- Ask your current supplier to see if they have a record of the supplier you switched from.
- If you were renting then get in touch with your landlord or flatmates and check with them to see if they remember.
How do I avoid being overcharged by my energy supplier?
Millions of households in the UK are overcharged by their energy supplier. To avoid being overcharged, take a meter reading regularly and send it to your supplier. It will then review your reading against the estimated amount you pay monthly and see if you are owed money or adjust your bill for the next month. Read our guide to find out how to read your energy meter.
Can I get a reward for switching energy supplier?
Although it’s not common, you may be offered an extra reward or incentive for switching to a specific energy supplier such as a small cashback sum. Suppliers are still negotiating a changed energy market with higher prices and aren't actively trying to gain customers in the numbers they were before the market challenges began, so there is little reason for them to offer extra rewards to entice potential customers.
How do I read my energy meter?
Taking regular meter readings will ensure you don’t pay too much for your energy bills. These days, increasing numbers of people have smart meters, which automatically send meter readings to your supplier.
However, many people haven’t yet switched, while some older smart meters may stop sending automatic readings after you switched to a new supplier. There are quite a few different types of meter out there, including smart meters, prepayment meters and Economy 7 meters, which may be hard to locate and difficult to read if you’ve never had to take a meter reading from it before.
You can find out how to read your energy meter with our guide. Once you’ve taken your first reading, you’ll see it’s a fairly simple process – try to get into the habit of submitting a meter reading every month to your supplier to avoid paying too much for your energy. You’ll also need to take a meter reading should you switch energy supplier.
