Energy suppliers are sitting on almost £7 billion of household's money
Research suggests 16 million UK households have almost £7 billion in energy credit, with half of those in credit (49%) having balances over £200[1]
Credit is £5 billion higher than last year[2] against the background of a mild winter and consumer efforts to reduce energy use
Nearly four million households owe £920 million to their energy providers – £234 on average per home – falling from six million a year ago[1]
Half of homes in credit (53%) are planning to leave cash with their supplier to manage their bills[3], while half (54%) don’t know how to reclaim credit[4]
Plymouth has the highest average energy credit in GB, with £603 on average per household, while Norwich has the most debt at £348 per home
Uswitch.com is advising consumers to check their credit balance and consider reclaiming any excess amounts.
More than 16 million households have over £6.7 billion in energy credit balances with their suppliers[2], according to new research from Uswitch.com, the comparison service.
Credit balances are £5.3 billion higher than last year[2] against the background of a mild winter and household efforts to reduce energy use. Households also benefited from the £400 in Government energy support between September and March.
The number of households in credit has risen by five million, up from 11 million households this time last year[2], with more than eight million bill-payers now in credit over £200[1].
Energy bill-payers in debt have fallen from six million to four million[2] over the same period, with the total amount of debt owed decreasing from £1.2 billion to £920 million. However, the average amount owed by households in debt has risen from £188 to £234[2].
Over half of households in credit (53%) say they will leave the money with their supplier to try to reduce their monthly payments going forward. A fifth (18%) say they will ask their supplier to return some of their credit, while only 14% will request for all of it to be returned[3].
Two thirds (64%) of consumers in credit say they have received an automatic refund from their supplier in the past 12 months, while half of households (54%) don’t know how to reclaim credit from their provider[4].
Plymouth is the city with the highest energy credit at £603 on average for every household, while Glasgow residents had the lowest amount at £302. Glasgow also had the lowest energy debt among UK cities at £78 per household on average, which Norwich had the most at £348 per home.
| Location | Average credit | % of city in credit | Average debt | % of city in debt |
|---|---|---|---|---|
| Plymouth | £603 | 50% | £271 | 13% |
| Brighton | £464 | 55% | £272 | 14% |
| Sheffield | £441 | 51% | £190 | 14% |
| Manchester | £431 | 56% | £287 | 15% |
| Bristol | £423 | 45% | £190 | 14% |
| Birmingham | £422 | 60% | £235 | 13% |
| London | £418 | 56% | £231 | 15% |
| Norwich | £417 | 59% | £348 | 13% |
| Liverpool | £404 | 66% | £276 | 11% |
| Newcastle | £399 | 63% | £128 | 9% |
| Leeds | £382 | 55% | £202 | 19% |
| Southampton | £361 | 64% | £318 | 18% |
| Edinburgh | £361 | 69% | £200 | 11% |
| Cardiff | £360 | 56% | £230 | 15% |
| Nottingham | £341 | 68% | £250 | 7% |
| Glasgow | £302 | 58% | £78 | 15% |
A quarter of households with credit (26%) say they have a higher balance this year compared to 202256]. Nearly three in five bill-payers (66%) with higher credit attribute this increase to the £66-a-month bill support they received from the Government, while half (47%) say it is down to cutting their energy use[6].
Two in five (40%) say their higher energy credit is due to their supplier setting direct debits too high[7].
Uswitch.com is advising consumers to check their credit balance and consider reclaiming any excess amounts. If your balance feels too high, have a conversation with your supplier about what might be sensible to have refunded or whether it’s possible to lower your direct debit payments if appropriate. More than nine in ten people received their refund within four weeks[7].
Richard Neudegg, director of regulation at Uswitch.com, comments: “This high level of any credit suggests that energy-saving awareness campaigns and cost-of-living support have played a part in protecting consumers from what could have been an even more difficult winter.
“It could also raise the question of whether direct debits set by suppliers in reaction to the energy price hikes have been much higher than they needed to be.
“Normally we’d expect to see people exit winter with little or no credit balances, but a substantial number of households have weathered the storm, leaving suppliers sitting on nearly £7 billion.
“If you are in credit, consider asking your supplier to refund some or all of your money, particularly if it will help ease other financial pressures. You should also ask your supplier to check that your direct debit is set at the right level for the amount of energy you use.
“Although the number of households in debt has fallen, it is important that those who do owe money to their suppliers continue to be given the support they need.
“Wholesale energy prices have fallen since December and the prospect of lower bills is on the horizon, but costs are still historically high. Those struggling during the cost-of-living crisis continue to need help from the Government and suppliers.
“It is important that people without a smart meter continue to keep their supplier up to date with regular meter readings to ensure bills are as accurate as possible. Your supplier may also request new readings if you ask them for your credit to be refunded.”
Notes
Research conducted online by Opinium, 31st March-5th April 2023, among 2,003 UK energy bill-payers, weighted to be nationally representative.
1. Respondents were asked ‘Thinking about your most recent energy bill from your supplier, which of the following best applies to you?’ regarding being in credit, debt or neither. 58% said they are in credit, 14% said they are in debt, and 18% said they are even. 58% of 28.1 million households = 6,298,000. 6,298,000 x £410.58 average credit = £6,691,632,840. 14% of 28.1 million = 3,934,000. 3,934,000 x £233.75 average debt = £919,572,500. 49% of respondents are owed £200 or more. 49% of 28.1 million = 7.9 million.
2. Uswitch.com research. Overall amount of debt in April 2022 was £1.2 billion, the overall amount of credit was £1.4 billion. 10.7 million households were in credit, 6.4 million households were in energy debt.
3. Respondents were asked ‘Taking into account the high price of energy, what do you plan to do about your energy credit over the next six months?’ 53% said ‘leave it with my supplier to try to reduce my monthly payments’, 18% said ‘ask my supplier to return some of it’, 14% said ‘ask my supplier to return all of it’.
4. Respondents were asked ‘Are you aware of the method to claim back a refund?’ 16% said ‘Yes, my energy provider issues automatic refunds’, 30% said ‘Yes, my energy provider has told me how to claim a refund’, 35% said ‘No, I do not know how to claim back credit from my energy provider’.
5. Respondents were asked ‘Thinking about the amount you are in credit with your energy supplier, how does this compare with a year ago?’ 26% said ‘My credit is higher’.
6. Respondents in credit were asked ‘Which of the following do you think contributed to you having higher credit this year than last year?’ 58% said ‘The £66-a-month cost of living energy bill support from the Government’, 47% said ‘Reducing my energy usage at home’, 40% said ‘Direct debit set too high’.
7. Respondents in credit were asked ‘If you have requested credit back from your energy supplier in the last 12 months, how long did they take to get it back to you?’ 90% received it back within four weeks.
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.