Energy suppliers hold £8.1bn of customers’ money

Energy firms held £8.1 billion of customers’ overpaid bills at the beginning of 2023, according to Ofgem’s findings

At the beginning of 2023, energy companies held an estimated £8.1 billion in overpayments from customers’ bills.

That’s according to new figures released by Ofgem.

A considerable number of households make regular monthly payments, building up a surplus during the summer months to help cover the increased expenses of winter.

MP Angus MacNeil has accused companies of accumulating “excessive reserves” and “profiting from this financial advantage.”

Energy UK explained that direct debits are calculated based on forecasts made during periods of volatile unit prices.

Customers can, however, request refunds.

The arrangement is structured to guarantee that customers maintain larger credit balances when approaching the winter months in September and October.

Ofgem, the energy regulator, emphasised that “customers have the right to request their balance back at any time and should receive a prompt refund.”

Energy Live News has contacted Ofgem for comment.

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