Martin Lewis urges people to check for energy bill refunds now
Energy firms are reportedly sitting on £3 billion of customer cash from Direct Debit payments.
Martin Lewis is urging everyone paying their energy bills by monthly Direct Debit to check whether they have built up too much credit with their provider and could be due refunds this month. White co-presenting Good Morning Britain (GMB) with Susanna Reid on Wednesday, the consumer champion explained that this period of time is the lowest point in the 'energy debt cycle'.
That simply means credit accrued on your account during the colder months - when you typically use more energy - has passed and the warmer weather puts less of a demand on heating your home. As a result, Direct Debit customers who have more than a month and a half's worth of crest built up can ask for all or some of it back to help with other costs.
Martin told GMB viewers that energy firms are sitting on around £3 billion of cash, derived from Direct Debit payments.
The financial guru explained that to get your money back you need to have a working smart meter and pay your bills by Direct Debit. He also advised keeping a 'buffer' amount on your energy account for any unexpected usage and peace of mind when the colder weather returns.
Martin said: 'If you go and check your credit and you have substantial credit on your monthly Direct Debit energy account right now you have too much and you should be asking for it back - that's why we're doing it today.
'My rule of thumb - and I can't get an amount because it depends on the proportion of how much you pay - if you have more than a month and a half worth of Direct Debit in credit right now, get in touch with your energy supplier and ask for a refund.'
He explained that you need to check if your Direct Debit amount is right first, then call and tell them you have 'too much credit and would like that cash back'.
Martin also explained that underlegislation, energy firms are obligated to refund your money under these circumstances and if they don't, contact the free energy ombudsman service.
He also shared one viewer's success story. Diane discovered she had £1,000 in credit, contacted her energy supplier and got an £800 refund. She opted to leave £200 in the account as a buffer.
Another viewer, LIz, had £800 in credit and emailed Octopus Energy for a refund. She got £500 cash back and left 3300 on her energy account.
The financial guru recently covered energy credit refunds in the MoneySavingExpert newsletter, and it's something he has shared on his Podcast and TV show, to help people put more money back in their pockets.
Martin has previously explained taking regular meter readings is key to ensuring energy bill estimates are accurate and people pay close to what their energy usage expectations are predicted to be by their provider.
Martin Lewis two-step check for energy refunds
Martin shared a couple of checks to do before contacting your energy supplier. The first is to make sure you're up to date with meter readings as most people receive a refund at the end of the year if they've built up too much credit.
The second is to check how much credit you've built up and if it's around a month and half's worth of Direct Debits, then contact your supplier and ask for some, or all of it back - depending on how much money is there.
You can read Martin's full guide to getting energy bill refunds on MSE.com here.
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