Working from home: Expert explains how to claim for energy bills
When you subscribe we will use the information you provide to send you these newsletters.Sometimes they’ll include recommendations for other related newsletters or services we offer.Our Privacy Notice explains more about how we use your data, and your rights.You can unsubscribe at any time.
Energy regulator Ofgem wants to limit the amount in credit balances suppliers can keep which could mean each household getting back £65 on average. It follows concerns by the regulator that some firms may be using the excess money to fund “otherwise unsustainable” business practices.
Customers on direct debit pay the same amount each month based on estimated consumption.
Typically they build up credit in the summer when use is lower and draw down on the balance in winter. But Ofgem says suppliers should reset the credit balance to zero each year because many people are overpaying. The plan could be rolled out next year.
Peter Earl, of Comparethemarket.com, said: “Proposals to return credit balances in a timely manner should be welcomed, especially given the burden the past year has placed on people’s finances. Ultimately, any credit belongs to the customer.”
Jonathan Brearley, Ofgem chief executive, said: “These proposals would ensure suppliers are not holding on to more money than absolutely necessary, potentially returning millions.
“This is an important step in making the retail energy market fairer for consumers.”
An Energy UK spokesman said: “Some suppliers already refund credit balances automatically so we now need to look in detail at Ofgem’s proposals.”
Source: Read Full Article