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Energy companies to refund direct debit customers billions

hand grabbing money

Energy companies are set to refund direct customers who are in credit by over a month

The agreement was announced following a meeting between the heads of the big six and a number of ministers.

According to the new rules, any customer who is in credit by more than one month for their energy bills, will be granted an automatic refund.

Close to 13 million households pay for their energy consumption by direct debit.

New rules follow accusations of energy companies profiteering

The new arrangements were hammered out following accusations that the big six energy suppliers were taking advantage of their consumers.

In a piece produced by the Mail on Sunday, it was revealed that energy providers make an estimated £36 million in interests, based on customers’ accounts which are in credit.

Energy companies are expected to guarantee that they will review customer accounts two times a year to ensure they do not amass a large amount of credit.

A win for ‘hard-pressed working people’

Energy Minister Greg Barker described the news as “a real win for hard-pressed working people.”

“Thanks to the pressure from The Mail on Sunday and consumers up and down the country, we have together been able to get a better deal without having to resort to the blunt instrument of legislation, which means these changes should be in place by this winter.

Speaking on the meeting, he said: “I had a very frank and candid meeting with the big six last week; it was cards on the table time.

“I’m very pleased to report that we appear to have made real progress for consumers. There’s still detail to be agreed and I will not rest until we have scored a better deal for all energy consumers.”

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  • Consumer Partnership

    But will we still have to ask for it?

  • Sue Lees

    Coincidentally I emailed npower yesterday to ask it to halve my dd. The last time I phoned was when my account was in (a lot of) credit I told them I wanted a refund so that I would get the interest instead of them. They had the audacity to tell me it wasn’t like that and that they weren’t really holding onto my money,…dur ok then npower.

  • Vee1984

    Will this mean that these companies can then add further charges to bills by adding on what will be termed, additional administrative charges, to administer repayments?

  • BenC

    Npower wanted to increase my DD from 134 to 207 – the third time they have revised the figure in about 5 months – they will no doubt review my request after 2 months claiming the higher figure as last time – my account was in credit when they wrote to me – what a ripoff

  • James

    Npower is a bully, debiting my bank with huge amounts based on fictitious so called “estimates”, and then threatening me with the sheriff and ccj’s
    They are impossible to call on the phone, and a huge waste of time.
    They have no respect for individuals, so I left.
    Good riddance .

  • Redmired

    The current credit on my Electricity bill is larger than the annual bill. The bill is currently reviewed twice a year, and they alternate between increasing and decreasing the DD. It is as if they don’t have a clue what they are doing.