Money Saving Expert Martin Lewis has sent a message to customers paying their energy bills by direct debit. Taking to Good Morning Britain on Wednesday (May 3), he said money accumulated in credit would be better in the pockets of customers.
Using a graph to show how direct debits are higher during the colder months to account for increased usage, the presenter and journalist said energy companies were sitting on an estimated £7 billion in customer credit, reports the Liverpool Echo.
But as we head into the warmer months, and with energy bills expected to drop by around 20% from July, many people could be paying too much and need to take action, the Daily Record reports.
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Mr Lewis said: “This week is the week you start to pay off that debt and move into credit which peaks in November before it starts to go down again. This week is the week in the year you should have the least amount of credit.”
He added: “Exactly how much you’ll have depends on when you started with the energy firm" before continuing: “Effectively, there’s no reason to be in credit right now because this is the lowest point in the cycle.”
Mr Lewis said having having half a month’s worth of credit is “okay” but warned: “If you’re two or three months in credit right now, that’s too much.”
Martin added: "Right now is the right time to go to your energy account, have a look whether you are in credit or not and if you are in credit, and it’s a substantial amount, that is when I would be asking for the money back
“At the start of May, you shouldn’t really have any credit, you don’t need any.”
One viewer shared her success with getting a refund on her energy credit. Kerry contacted the show to say that she had £700 in credit, requested a refund of £500 and Octopus Energy paid it into her bank account within one week.
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