The rule that tells you whether you need to apply for an energy refund of up to £214 from your supplier

Scottish Sun

13 hours ago

Millions could be owed money from their energy provider.
CASH IN The rule that tells you whether you need to apply for an energy refund of up to £214 from your supplier
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AS Brits switch off their heating for the summer, energy bills for many households will likely be costing less.
Bills will be driven down further from next week as the price cap is set to drop to £1,720 on July 1, marking a £129 boost for households that use a typical amount of energy.
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Energy bills will be going down for many households from next week
Credit: Alamy
While it comes as good news for many families, it also means you could be overpaying your bill and ending up in credit.
You're entitled to request a refund of your credit from your energy supplier, and it can be tempting to do so as soon as your account goes into positive.
But according to energy experts, there's a simple rule you should follow to know exactly when you need to ask for your money back.
'As a general rule, households should keep about two months' worth of payments in energy credit before they think about asking for a refund from their supplier," USwitch energy expert Elise Melville says.
'For a household on a standard tariff using an average amount of energy this would be about £286 of credit – or a sixth of the annual price cap of £1,720 from July.'
Citizens Advice also urges energy customers on its website to leave money on their account during summer and autumn to cover higher energy costs in the winter months.
USwitch figures from March revealed that more than 15 million households were in credit to their energy supplier coming into the summer.
Some households were sitting on more than £500 in energy credit, meaning they could get back £214 in cash - while still having two months' worth of energy payments left in their account - if they followed the rule.
USwitch told The Sun the amount of people in excess credit is likely to be much higher now than it was in spring, and urged households to think about asking for a refund.
'If you have a significant amount of credit it's worth considering if you would rather use it for something else.
Families can get FREE washing machines, fridges and kids' beds or £200 payments this summer – and you can apply now
"If you are in credit by more than two months' worth of payments, it may be worth asking your supplier for some of the excess to be refunded," Melville added.
How to request a credit refund
Before asking for a refunds, you should do is make sure your supplier has the most up-to-date meter reading.
This will show you if you're being charged the right monthly amount to begin with.
Every energy supplier has its own process for customers getting a refund, so you should check your supplier's website to find out how you can apply.
If you're a British Gas customer, for example, you can request a refund through your online account.
As long as you've been billed in the last 14 days and you're not switching providers, your credit balance will be refunded to your bank account within 10 working days.
OVO Energy customers can request a refund if their credit is at least £5 higher than one month's direct debit. After submitting a meter reading to your online account, customers should head to the payments page and click apply for a refund.
Why are energy bills going down?
Energy regulator Ofgem has announced that prices for households on standard variable tariffs will go down by 7% from July 1.
The energy price cap change will see average annual bills for households that use a typical amount of energy drop from £1,849 to £1,720 - a reduction of £129.
In its announcement, Ofgem said: "Between 1 July and 30 September 2025, the energy price cap is set at £1,720 per year for a typical household who use electricity and gas and pay by Direct Debit.
"This is a decrease of 7% compared to the cap set between 1 April to 30 June 2025 (£1,849).
'The price cap also makes sure that prices for people on a standard variable tariff (default tariff) are fair and that they reflect the cost of energy."
Customers who pay for electricity and gas by either Direct Debit, prepayment meter, standard credit or Economy 7 meter will be covered by the price cap change.
The changes are set to come in from 0.01am on Tuesday, July 1.
If you're on a fixed deal with your energy supplier, you won't be affected by the price cap change.
How do energy direct debits work?
THERE are two main types of energy direct debits - fixed and variable.
Most energy customers pay a fixed direct debit, which means you pay a fixed amount every month.
Your energy company will work out the cost of your energy for the year ahead and divide this into equal payments.
Most energy firms will use the average amount of gas and electricity used in previous years to calculate your monthly instalments.
With a fixed direct debit you can spread the cost of your energy use without any surprises.
If your energy supplier has upped your fixed direct debit amount even though your usage is down, you can request that the fixed monthly charge is brought down - we've explained how to challenge your bill below.
Those on fixed direct debits are more likely to build up credit during the warmer summer months and if you're in credit but your direct debit has risen substantially this winter it's worth challenging it.
Some energy companies give customers the option to pay with a variable direct debit.
With a variable direct debit, you can choose to pay a varying amount every month or every quarter, depending on the energy you use.
You'll pay for the energy you use, this means you'll likely pay more in the winter and less in the summer.
Some experts argue that this type of direct debit method makes it harder for households to budget in the colder months but if you only want to pay for what you use each month then a variable direct debit may be a safe bet.
Do you have a money problem that needs sorting? Get in touch by emailing [e-mail].
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