Can energy suppliers insist you stay in credit?

victor2

When payment by direct debit was first introduced, you would expect your account to be in credit over the summer and debit over the winter. Now it seems suppliers want you to always be in credit. Can they enforce this?

la531983

If you have an issue with this, simply ask to go onto Variable DD and supply a meter reading every month to facilitate this. 

If your provider doesn't offer it, move to one who does. 

MattMattMattUK

victor2 said:

When payment by direct debit was first introduced, you would expect your account to be in credit over the summer and debit over the winter. Now it seems suppliers want you to always be in credit. Can they enforce this?

Yes, they can.

MSE_Clare

Hi victor2

You are correct that typically you'll be in credit after the summer months, but this isn't always the case.

Ofgem set out guidelines for ""fair and reasonable"" direct debits, meaning suppliers must take reasonable steps to ensure customers' direct debit levels are based on the best available information, and they must be able to explain to you how they set it.

If you have accumulated credit, you're entitled to ask for it back, and your supplier must refund it. If your supplier thinks the credit should be withheld, it must clearly explain the reasons why - but you can challenge this.

See Martin Lewis: Energy bill credit – how much is too much? and our Energy direct debits help guide for more details.

Clare Casalis - MSE Energy Expert

This question and answer came about during the MSE Forum 'Ask An Expert' event. It won't be updated so may no longer be correct at time of reading. This info does not constitute financial advice: always do your own research on top to make sure it's right for your circumstances

Ask an Expert: Energy (Sep 2023)

Some useful MSE content mentioned above:

Martin Lewis: Energy bill credit – how much is too much?

Energy direct debits help