Southern gas/elec refund to bank account without request

Lady_K

I pay Southern electric for dual fuel by set monthly direct debit. I'm a bit surprisd to see they have refunded my bank account by around £300 split between the gas and elec for overpayments. They didn't ask me if I wanted to leave it in my account or have it refunded. I really wanted it to stay in my account to cover extra costs over winter and the increase in energy bills. I thought that was the point of paying by direct debit to prepare for higher bills over winter.

Will this cost me any more in the long run because the prices have risen since I paid in the extra that has now been refunded?

Francesanne

I'm also with Southern electric but have never had that happen to me. I like to build up credit for winter fuel bills just to make the winter bills a little less horrendous. I use very little gas (only a gas hob) & when I've built up credit on gas account just phone Southern and ask if I can transfer credit from gast to electric and that's never been a problem. Have you rang them to ask why they gave you a refund without you requesting it? Maybe it was done in error. Think I'd give them a call if you haven't already do so.

Lady_K

I called and the girl told me, although she did not seem too certain about the amount but that when your account gets to £120 over they refund automatically but one of mine was £130 over and the other £180 over so I don't know why the £180 one wasnt refunded before now if the limit is £120. Perhaps they just review it at this time of year because she did say that I would recieve no refunds now untill after the next winter anyway.

I might ask them to take off the automatic refund unless I request it myself as with energy prices rising I want to feel I am covered for that instead of worrying later.

I suppose its a good thing in a way because they arent seen to be hoarding peoples overpayments but it can feel a bit odd when you are supposed to be saving by dd to cover winter. Even if they don't refund between now and winter its still not enough to cover the winter bills as I'm back down to zero now

Premier_2

Lady_K wrote: »

...
Will this cost me any more in the long run because the prices have risen since I paid in the extra that has now been refunded?

You will be billed at the price appropriate to when you use the energy. Paying up front does not change this.

So you have not lost money by them returning your overpayment

macman

And why would you want to give them an interest free loan, when you can have the surplus sitting in a high interest account earning you money...well at least 3% interest?
£300 is for most accounts too big a credit in June, as the heating goes off you'll build that much higher until the cold weather starts again.

Ron2

Some people are never happy.

You get a refund and all you do is moan.

I would welcome a refund of that amount.

dogshome

Hi Lady_K Different suppliers have different attituudes when dealing with excess credit on D/Debit accounts, the chances are that SE will not have returned the total credit and and are holding back some to deal with winter bills.

However, if you are not really on top of your bills and fully aware of of the amount of credit that has built up and why, I strongly advise that you tuck this £300 away as it would not be the first Credit Payment that a Utility has issued, but then demanded back at a later date.

Lady_K

Ron2 wrote: »

Some people are never happy.

You get a refund and all you do is moan.

I would welcome a refund of that amount.

Not moaning at all, more a concern in my particular circumstances. I arranged the dd payment to cover myself over the year and prevent me from worrying and I was surprised to recieve the refund and started to worry that I'd not have enough later.

I have been with Southern Electric for years and have recomended them to others many times. I understand why they do the refund and it is good that they do, but there will be some people who prefer to opt out of the automatic refund and after ringing them they confirmed I can do this if I wish and can call at any time to get a refund if its over credited.

macman

You'll only not have enough later if you spend it in the meantime. It's your money, up to you how you budget it.

spiro

This may be 2 years old but may be helpful http://www.ofgem.gov.uk/Media/FactSheets/Documents1/directdebitleaflet.pdf

lorraine_9

I'm with Southern Electric (ebico) and they refund credits on your bill into your bank automatically, as stated on my bill. I knew I had a credit on my account in January last year and it was refunded in my bank in August after the 2nd bill of the year. Not sure if you can request that it stays as a credit or not.

hth
Lorraine