Understanding Credit on Your Energy Account
Understanding Credit on Your Energy Account
Credit on your gas or electricity account means you have paid more money to your energy supplier than you have used in energy. This often happens when your monthly payments are set higher than your actual usage, or if you make extra payments by mistake. When your account is in credit, the supplier holds this surplus, which you can usually request to be returned to you.
Credit can build up for several reasons. One common cause is estimated billing. If your supplier estimates your usage and you pay by direct debit, you might be charged more than you actually owe – especially if you submit an accurate meter reading later that reveals you’ve used less energy. Overpayments can also occur if you move out before the end of a billing cycle, switch suppliers, or simply pay more than required.
Regularly checking your account balance is important to make sure you are not leaving money with your supplier unnecessarily. Many people only discover they are in credit when they review their annual statement or check their online account. Keeping an eye on your balance helps you spot overpayments early and gives you the chance to claim back credit if you’re owed money.
Under Ofgem rules, UK energy suppliers must make it easy for you to access your account information and request a refund of any credit owed, unless there is a good reason to hold it (such as an upcoming bill or if you’re in a fixed-term contract with exit fees). If you think you have credit on your account, contact your supplier to ask for a refund. Keeping your account up to date and providing regular meter readings can help avoid credit building up in the first place.
Understanding how credit works on your energy account not only ensures you don’t miss out on money that’s rightfully yours, but also helps you manage your energy bills more effectively.
Your Rights as an Energy Customer Regarding Credit
Your Rights as an Energy Customer Regarding Credit
As an energy customer in the UK, you have clear rights when it comes to reclaiming any credit owed by your gas or electricity supplier. These rights are protected by UK energy regulations and are designed to ensure that you are not left out of pocket if you have overpaid or built up a surplus on your account.
Your Right to a Refund
If you have paid too much for your energy – either because your direct debit was set too high, you’ve moved out, or your actual usage was lower than estimated – you are entitled to get that money back. Energy suppliers are required to return any credit on your account unless you choose to leave it as a buffer for future bills. This applies whether you are staying with your current supplier or switching to a new one.
The Energy Act 2013, Section 9 sets out your legal right to claim back credit, and Ofgem (the energy regulator) has established guaranteed standards to make sure suppliers act promptly. According to these rules, suppliers must issue a final bill and refund any outstanding credit within six weeks of your account closing.
How Quickly Should Credit Be Returned?
Suppliers should process your refund within a reasonable timeframe. For most customers, this means you should receive your money within 10 working days after your final bill is issued, and no later than six weeks after you close your account. If your supplier fails to meet these deadlines, you may be entitled to compensation.
Small Credit Amounts (Under £5)
Sometimes, you might notice a small amount of credit left on your account – often under £5. Suppliers may have different policies for handling these small balances. Some may automatically refund the amount, while others might only do so if you request it. In certain cases, suppliers may donate small, unclaimed balances to charity. If you believe you are owed even a small amount, it’s always worth contacting your supplier to ask for a refund.
How Your Rights Are Protected
Your rights are protected by Ofgem’s regulations, which require suppliers to treat customers fairly and return any money owed. The Energy Act 2013, Section 9](https://www.ofgem.gov.uk/information-consumers/energy-advice-households/check-if-you-are-owed-money-your-energy-bill) gives Ofgem the authority to enforce these rules and set standards for how quickly suppliers must act. If your supplier refuses to return your credit or is slow to process your refund, you can take further action. Start by raising the issue directly with your supplier. If the problem isn’t resolved, you may want to read more about [problems with your energy bill and how to escalate complaints.
Understanding your rights can help ensure you are not left out of pocket. If you think you might be owed a refund, check your account statements or contact your supplier directly. For more detailed information on your rights and the legal requirements for energy suppliers, see the guidance from Ofgem on the Energy Act 2013, Section 9.
How to Claim Back Credit from Your Current Energy Supplier
To claim back credit from your current energy supplier, it’s important to follow a clear process to ensure you receive any money you’re owed. Here’s a step-by-step guide to help you through the process, including what you’ll need and what to expect.
1. Check Your Account Balance
Start by reviewing your most recent energy bill or logging into your online account with your supplier. Look for a section that shows your account balance – if it’s in credit, this means you’ve paid more than you’ve used. This can happen if your direct debit payments are higher than your actual energy usage, or if you’ve made extra payments.
If you’re unsure how to read your bill or want to understand more about your rights, you can find broader information on claim back credit.
2. Contact Your Supplier to Request a Refund
Most suppliers will not automatically refund credit unless you ask. Contact your supplier’s customer service team – this can usually be done by phone, email, or through their online portal. Some companies also have a dedicated form for refund requests.
3. Information You Need to Provide
When you make your claim, have the following information ready:
Your account number (found on your bill or online account)
Your full name and address
Recent meter readings (to make sure your account is up to date)
Your preferred refund method (if the supplier offers a choice)
Supplying a recent meter reading is especially important, as it ensures your supplier has the most accurate information about your usage and account balance.
4. How Suppliers Return Credit
Energy suppliers typically return credit in one of the following ways:
Bank transfer: The refund is paid directly into your bank account, often the one used for direct debits.
Cheque: Some suppliers may post a cheque to your registered address.
Account credit: If you prefer, you can leave the credit on your account to cover future bills.
If you have a prepayment meter, the process may differ slightly, so it’s best to check with your supplier for specific instructions.
5. How Long Does a Refund Take?
Most energy suppliers aim to process refunds within 10 to 14 working days after your request, provided your account is up to date and you’ve supplied an accurate meter reading. If there are any delays, contact your supplier to follow up.
Further Advice
If you’re looking for more detailed guidance on making a successful claim, see our tips on how to claim refunds from energy suppliers in the UK. For an overview of your rights and what to do if your supplier doesn’t return your credit, visit our main page about claim back credit.
Remember, energy suppliers in the UK are regulated by Ofgem and must follow rules about fair billing and refunds. If you encounter problems, you have the right to escalate your complaint or seek further support.
What to Do if Your Energy Supplier Does Not Return Your Credit
If your energy supplier refuses to return your credit or does not respond to your request, you have several options to escalate the issue and seek a resolution.
1. Escalate Your Claim with the Supplier
Start by contacting your supplier’s customer service team in writing – by email or letter – so you have a clear record of your request. Clearly state the amount of credit you believe you are owed and provide copies of any supporting evidence, such as recent bills or statements showing your account balance. If you do not receive a satisfactory response within a reasonable time (usually within 8 weeks), you can escalate your complaint within the company. Most suppliers have a formal complaints process, which you should follow step by step.
For additional guidance on resolving disputes with your supplier, see our advice on problems with your energy bill.
2. Keep Records and Evidence
Throughout this process, keep detailed records of all communications with your supplier. Save copies of emails, letters, and notes from phone calls (including dates, times, and the names of anyone you spoke with). Also, keep any documents that show your credit balance, such as bills or account summaries. This evidence will be crucial if you need to escalate your complaint further.
3. Contact the Energy Ombudsman
If your supplier fails to resolve your complaint after you have followed their complaints procedure – or if you have not received a response within 8 weeks – you can take your case to the Energy Ombudsman. The Ombudsman is an independent service that can investigate your complaint free of charge. They have the authority to order your supplier to pay you any credit owed, issue an apology, or take other corrective action.
Before contacting the Ombudsman, make sure you have completed your supplier’s complaints process and gathered all relevant evidence. The Ombudsman’s decision is binding on the supplier, so this is often an effective way to resolve longstanding disputes.
4. Your Rights Under the Law
Under UK law, energy suppliers are required to refund any credit owed to customers, unless there is a valid reason to withhold it (such as an outstanding debt on your account). These obligations are set out in the Energy Act 2013, Section 10, which outlines the duties of energy companies regarding customer accounts and refunds. If you believe your supplier is acting unlawfully, referencing this legislation in your correspondence can strengthen your case.
5. If Your Supplier Goes Out of Business
If your energy supplier has ceased trading, your credit is usually protected. Ofgem, the UK’s energy regulator, will appoint a new supplier to take over your account. The new supplier is responsible for honouring any credit balances you held with your previous supplier. You should be contacted by the new supplier with instructions on how to claim your credit. Keep all your previous bills and account statements as evidence, as you may need to provide proof of your credit balance.
If you have difficulty recovering your credit after your supplier has gone out of business, you can still raise a complaint with the new supplier or seek advice from organisations such as Citizens Advice.
By following these steps and keeping thorough records, you can maximise your chances of successfully claiming back credit from your energy supplier – even if the process is not straightforward. For more detailed advice on handling disputes, see our section on problems with your energy bill, or learn how to escalate your complaint to the Energy Ombudsman. If you want to understand the legal framework in detail, you can read the full text of the Energy Act 2013, Section 10.
Checking for Credit with Previous Energy Suppliers
When you switch energy suppliers or move home, you might end up with unused credit on your old gas or electricity account. This often happens if you paid by direct debit, as suppliers usually estimate your usage and take regular payments. If your actual usage was less than estimated, or if you paid in advance and closed your account before the end of a billing period, you could be owed money by your previous supplier.
Why You Might Have Credit with a Former Supplier
There are several reasons why credit can build up with a past energy supplier:
Overestimated usage: If your supplier predicted higher energy use than you actually consumed, your payments may have exceeded your bills.
Final meter readings: Providing an up-to-date meter reading when moving or switching helps ensure your final bill is accurate. If you didn’t, your supplier may have used an estimate, potentially leaving your account in credit.
Direct debit payments: Regular payments sometimes create a surplus, especially if your usage drops or you leave before the end of a billing cycle.
How to Find Out if a Previous Supplier Owes You Money
The first step is to review your final bill from your previous supplier. This should show if your account was left in credit. If you don’t have a copy, contact your old supplier and ask for a statement of your account. You’ll need to provide details such as your old address, account number, and the dates you were a customer.
If you’re unsure where to start, you can check if a previous energy supplier owes you money for more detailed guidance.
Steps to Claim Credit from a Past Energy Supplier
Contact your previous supplier: Get in touch by phone, email, or through their website. You’ll need to confirm your identity and provide any relevant details, such as your old account number and final meter reading.
Request a refund: If your account was in credit, ask the supplier to refund the balance. Under Ofgem rules, suppliers must return any credit once your final bill is settled.
Provide payment details: Some suppliers may send a cheque, while others can transfer the money directly to your bank account.
Follow up if needed: If you don’t hear back or receive your refund within a reasonable time (usually a few weeks), chase up your request. Suppliers regulated by Ofgem are required to handle refunds promptly.
Escalate your complaint: If the supplier does not return your money, you can make a formal complaint. If this doesn’t resolve the issue, you may be able to escalate it to the Energy Ombudsman.
It’s your right to claim back credit from a previous supplier, and suppliers are legally obliged to refund any money owed. Keeping records of your bills, payments, and final meter readings can help make the process smoother. If you think you might have unclaimed credit, it’s worth checking, even if some time has passed since you switched or moved.
Managing Your Energy Costs and Avoiding Overpayments
Keeping your energy costs under control not only saves you money but also helps you avoid building up unnecessary credit with your supplier. Here’s how you can monitor your usage, prevent overpayments, and ensure your bills reflect what you actually use.
Monitor and Manage Your Energy Usage
Staying aware of how much energy you’re using is the first step to managing your bills effectively. Simple actions like turning off lights when leaving a room, using energy-efficient appliances, and setting your heating to come on only when needed can make a real difference. For more detailed advice on reducing your energy costs, take a look at these energy management tips. You might also benefit from exploring energy optimization techniques to help make your home more efficient.
Avoid Overpaying and Accumulating Unnecessary Credit
Overpayments often occur when your estimated usage is higher than the energy you actually use. This can happen if your supplier relies on estimated meter readings instead of actual readings. To avoid building up credit that sits with your supplier, always provide regular meter readings. If you’re on a fixed monthly payment plan, check your statements to see if your balance is growing. If it is, you might be paying more than you need to.
It’s your legal right under the terms of your energy contract and the rules set by Ofgem (the energy regulator) to request a refund of any credit on your account. Suppliers are required to refund credit promptly, unless there’s a good reason to keep it (such as covering upcoming seasonal bills).
The Benefits of Regular Meter Readings and Accurate Billing
Providing regular meter readings is one of the best ways to ensure your bills are accurate. If you don’t, your supplier will estimate your usage, which can lead to overpayments and unnecessary credit on your account. Submitting readings each month, or whenever your supplier asks, helps keep your account up to date.
For even greater accuracy and convenience, consider having a smart meter installed. Smart meters automatically send readings to your supplier, so your bills are always based on actual usage. They also help you track your energy use in real time, making it easier to spot opportunities to save. You can find out more about the benefits of smart meters and your rights as a consumer through Ofgem’s Smart Metering Implementation Programme.
By taking these steps – monitoring your usage, submitting regular readings, and staying informed – you can manage your energy costs more effectively and avoid the frustration of overpaying or waiting to claim back credit.
Additional Support for Paying Your Energy Bills
If you’re worried about paying your energy bills, you’re not alone. Many households in the UK are struggling with rising energy costs, but there is additional support available to help you manage these expenses. Alongside claiming back any credit from your energy supplier, you may be eligible for grants, discounts, or other financial assistance.
Grants and Benefits to Help with Energy Costs
There are a range of grants and benefits to help you pay your energy bills. These can include one-off payments, discounts on your bills, or schemes to help improve your home’s energy efficiency. Some of the main types of support include:
Warm Home Discount Scheme: This government scheme provides a one-off discount of £150 on your electricity bill if you meet certain eligibility criteria, such as being on a low income or receiving specific benefits. You can find out if you qualify and how to apply by visiting the Warm Home Discount Scheme.
Energy Support Scheme: The government offers a range of support options for people on benefits or low incomes. These include the Warm Home Discount, home energy improvement schemes, and other discounts for both households and businesses. For a full overview of what’s available and how to apply, visit the Energy Support Scheme.
Charitable grants: Some energy suppliers and charities offer grants to help clear energy debts or pay for energy-efficient appliances. These are typically aimed at vulnerable customers or those facing financial hardship.
How Financial Support Can Help
Claiming back any credit from your energy supplier can give you an immediate boost, but combining this with other financial support can make a bigger difference. For example, using a grant to pay off outstanding bills while reclaiming credit can help you get back on track more quickly. Additionally, some schemes offer advice on reducing your energy usage, which can lower your bills in the long term.
Where to Find Help If You’re Struggling
If you’re finding it difficult to pay your energy bills, don’t wait until you fall behind. Reach out to your energy supplier as soon as possible – they are required by law to work with you to agree on a payment plan you can afford, under Ofgem’s rules for treating customers fairly. You can also contact local advice agencies or charities for help with budgeting and accessing grants.
Remember, you have rights as a consumer, and there is support available. By exploring grants, discounts, and reclaiming any credit you’re owed, you can take practical steps to manage your energy bills and reduce financial stress.
