Energy News

Energy giants owe customers £174 million

Wednesday, 16 December 2009

By Hazel Cottrell - hazel@consumerchoices.co.uk

Gas suppliers are accused of sitting on millions of pounds of customers’ money, as a result of billing customers by monthly direct debit.

Energy companies have built up a £174 million cash float, while customers are feeling the pinch, according to moneysupermarket.com.

It estimates that over five million UK households are in credit with their gas supplier and that they are owed an average of £89 each.

This totals £454million which means gas suppliers are sitting on £174million, if you discount the £280million that customers with fuel debts owe.

Customers have built up this credit by paying set monthly direct debit payments.

Scott Byrom, utilities manager at moneysupermarket.com, believes the number of people in credit is a cause for concern.

He said: “Even more concerning is that four-fifths of bill payers with ‘cash on float’ have not asked for their money back.”

However, Energy UK, which represents the “Big six” energy suppliers has dismissed this research and called it “misleading”.

Christine McGourty, director of Energy UK said: “It is common for customers to be in credit towards the end of the summer, when they have used less energy, and then to owe their energy company money during the winter months, when they have the heating on and use more energy.”

Chris Eagle, commercial manager at Energychoices.co.uk, said: “Set monthly direct debits are designed to help customers spread the cost of energy throughout the year, so people will be paying for more than they use in the summer.

“However, if you have built up a substantial credit, you should claim it back and speak to your supplier to adjust your monthly direct debit.”