Energy providers are sitting on £3 billion of households' money
16 million households have £3 billion in energy credit with their suppliers, with homes in credit having £210 left with their supplier on average[1]
Credit is £3.4 billion lower than last year[2], with energy bills higher than the previous winter when every household received £400 bill support
One in seven (14%) have balances over £300, and 5% have more than £500[1], yet only a quarter (28%) plan to ask for it to be returned[3]
Nearly four million households (14%) owe £771 million to their energy providers – £194 on average per home[1]
Newcastle is the UK’s energy-credit capital, with the average home storing £315 with their supplier, while Bristol has the least, at only £176[1]
Uswitch.com is advising consumers to check their credit balance and consider reclaiming any excess amounts.
Energy suppliers are sitting on £3 billion of households’ money[1] – with the average home in credit having £210 left with their provider, reveals research by Uswitch.com, the comparison and switching service.
Consumers should usually exit winter with little to no credit, having used it during the colder winter months. They should start rebuilding their credit levels during the spring and summer when energy usage is generally lower.
However, 16 million households (56%) have credit with their energy supplier at the end of this winter[1].
Overall, credit is £3.4 billion lower than last year[2], which may be due to energy bills being higher than the previous winter when households received £400 government support towards power bills.
One in seven consumers (14%) have balances over £300, and 5% have more than £500 with their energy provider[1] – but only a quarter (28%) of consumers plan to ask for it to be refunded[3].
Two in five households (44%) with more credit than this time last year say their balance built up over winter because their direct debit has been set too high. Two fifths of consumers (40%) attribute the increase in their credit balance to their efforts to reduce energy usage, while a third (33%) said they used the heating less often due to the mild winter[4].
More than half of households with credit (56%) plan to leave the money with their supplier to try to reduce their monthly payments. One in ten (11%) will ask their supplier to return their full balance, while 16% will ask their supplier to return some of it[2].
Nearly four million households are in debt to their energy providers to the tune of £771 million. On average, consumers in debt owe £194 to their providers[1].
Average debt per household has decreased slightly from £234 last year, although the number of homes in debt has risen by 167,000[3].
Consumers with Scottish Power have the highest average credit out of the major energy suppliers at £242, while Octopus Energy has the highest proportion of customers in debt. British Gas customers have the highest level of debt at £247, although it has the joint-lowest percentage of consumers in debt[1].
| Supplier | % in credit | Average credit balance | % in debt | Average debt balance | Average overall account balance |
|---|---|---|---|---|---|
| Octopus Energy (includes customers from Shell) | 63% | £233.22 | 17% | £136.78 | £132.50 |
| British Gas | 52% | £216.40 | 11% | £247.90 | £101.70 |
| E.ON Next (includes customers from E.ON) | 60% | £172.57 | 11% | £193.48 | £94.10 |
| EDF energy | 53% | £200.38 | 16% | £224.00 | £82.80 |
| OVO Energy (includes customers from SSE) | 65% | £200.16 | 14% | £201.59 | £112.90 |
| Scottish Power | 59% | £241.75 | 12% | £138.88 | £157.90 |
Newcastle is the UK’s energy-credit capital, with the average home storing £315 with their supplier, while Bristol has the least, at only £176. Brighton has the highest proportion of households in credit, while Newcastle, London, and Birmingham jointly have the highest percentage in debt[1].
| Location | Proportion in energy credit | Average energy credit | Proportion in energy debt | Average energy debt |
|---|---|---|---|---|
| UK average | 56% | £210.08 | 14% | £194.00 |
| Newcastle | 55% | £315.58 | 17% | £162.00 |
| Southampton | 65% | £274.16 | 14% | £186.61 |
| Manchester | 57% | £222.91 | 16% | £162.04 |
| Edinburgh | 57% | £222.18 | 13% | £182.13 |
| Brighton | 66% | £213.29 | 6% | £426.00 |
| London | 54% | £209.98 | 17% | £220.85 |
| Nottingham | 54% | £209.91 | 12% | £190.85 |
| Cardiff | 58% | £209.83 | 14% | £80.25 |
| Glasgow | 60% | £208.22 | 12% | £161.77 |
| Norwich | 57% | £203.86 | 12% | £118.94 |
| Birmingham | 62% | £202.66 | 17% | £208.08 |
| Liverpool | 55% | £201.00 | 13% | £245.55 |
| Sheffield | 55% | £194.93 | 8% | £83.67 |
| Leeds | 60% | £192.59 | 12% | £210.53 |
| Plymouth | 42% | £186.90 | 13% | £257.86 |
| Bristol | 64% | £176.64 | 14% | £142.81 |
In recent years, consumers have largely been advised to keep some credit in their account to help pay for energy bills that have remained high over the spring and summer.
However, bills are now falling, with the energy price cap reduced by 12% in April, and a further decrease predicted in July.
Uswitch.com is advising consumers to check their energy account and consider reclaiming any excess amounts of credit, which is generally any amount above two months’ worth of payments. Four in five consumers (79%) who requested a refund received it within four weeks of claiming it[5].
Will Owen, energy expert at Uswitch.com, comments: “Despite the expensive winter for energy bills, more than half of UK households are exiting winter with credit on their accounts.
“This may be because households were spending more on energy than the previous winter, as they were not benefitting from any government bill support this time around.
“In recent years, when bills have been so high and unpredictable, it has been a good idea to keep a lot of credit with your energy supplier.
“However, the fall in prices this spring means that consumers with excessive credit may want to consider reclaiming some of it. If you have a high credit balance, you may want to ask your supplier to check that your direct debit is set at the right level for the amount of energy you use.
“Although falling energy bills is good news, they are still high by historic standards and unfortunately the number of people in debt has risen slightly.
“It remains important that those who do owe money to their suppliers continue to be given the support they need, and we recommend that you contact your provider if you are worried about your energy debt.
“To ensure you are being billed accurately, make sure you submit regular meter readings to your supplier if you do not have a smart meter.”
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Notes
Research conducted online by Opinium, 22nd to 27th March 2024, among 2,002 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 and your energy account balance?’ 56% said they are in credit, 14% said they are in debt, and 18% said they are even. 56% of 28.2 million households = 15,789,531. 15,789,531 x £210.08 average credit = £3,317,106,854. 14% of 28.2 million = 3,987,812. 3,987,812 x £194 average debt = £771,760,957. See table for regional breakdown.
2. Uswitch.com research.
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?’ 16% said ‘Ask my supplier to return some of it’, 11% said ‘Ask my supplier to return all of it’, 56% said ‘Leave it with my supplier to try to reduce my monthly payments’, 17% said ‘I don’t know’.
4. Respondents in credit were asked ‘What do you think contributed to you having higher credit this year than last year? Select all that apply’. 14% said ‘I wasn’t at home as much this winter’, 33% said ‘The mild winter (I used less energy to heat my home)’, 40% said ‘I’ve been reducing my energy usage at home’, 44% said ‘My direct debit set too high, so I’ve built up credit’, 5% said ‘Other (please specify)’, 2% said ‘I don’t know’.
5. 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? 62% said ‘N/A I have not requested credit back from my supplier in the last 12 months’, 4% said ‘N/A - my supplier automatically refunds my credit when it’s high’, 2% said ‘Immediately / on the same day’, 7% said ‘Within 1 week’, 5% said ‘1-2 weeks’, 4% said ‘2-3 weeks’, 2% said ‘3-4 weeks’, 2% said ‘1-2 months’, 1% said ‘2-3 months’, 1% said ‘More than three months’, 1% said ‘I’m still waiting - it has been less than a month since I made the request’, 0% said ‘I’m still waiting - it has been more than a month since I made the request’, 9% said ‘I can’t remember’.
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.
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