Energy accounts perpetually in credit

kYuZz

Hello there,

I'm reaching out in the hope of finding guidance regarding an issue I'm experiencing with my E.ON electricity and heat accounts. Any advice would be greatly appreciated.

Here's the situation - Over the past months, both my accounts have been in credit by approximately £120-150. These credits originated from the government's support schemes that have since ended. However, despite the conclusion of the schemes, my monthly payments to E.ON resumed.

The credit balance in both my accounts have consistently remained above £100 for more than half a year now. I think this isn't quite right. I'd rather keep the money E.ON takes every month in my 5% easy-access savings account.

Has anyone else had a similar experience?

Then, there is the matter of my direct debits. Would it be advisable to cancel them?

I look forward to your responses.

MultiFuelBurner

It is not unusual to go into winter with a bit of credit on your account as you are likely to use more the next 3 months.

You could always ask Eon to put you on whole bill variable direct debit and that way your credit is used up first but beware some high amounts may go out for the heavy use winter months which can be 40-50% of people's bills for the whole year.

Keep_pedalling

Cancelling the DD would be foolish, unless you like paying more for your energy. Up until recently it has be very mild but your energy use over the next 3 months is going to be considerably higher than it has been for the last three. 

400ixl

The beginning of November is when your account should be in the most credit when on a fixed DD account. 

If you credit balance has stayed around the same during the summer when you use the least, you are going to need that balance (and potentially more) over the winter when you use more.

Have a read of https://blog.moneysavingexpert.com/2023/3/martin-lewis--energy-bill-credit---how-much-is-too-much--stop-th/

Lorian

120 credit is not going to last long if you like any form of heating on.  You might even need to contemplate raising your DD.

Scot_39

How does that £120 compare to your estimated annual bill / DD level ?

My post EPG (EBSS - the £400 at £66/67- was actually balance neutral with EOn and many others - for many folk - in EOn's case it simply reduced the DD I paid - meaning account credited same as before - the £66/67 just remained in my bank account) credit in the spring was c£350.

I was offered £200 back reducing balance to c£150 min was EOns suggestion when finally went for refund after Oct cap released. I left about £40 more than their suggestion - taking just under half credit.

And despite no real winter heating bills yet - already been eating into that remaining credit.

As above cancelling the DD would be unwise.  Standard credit rates and standing charges on Ofgem regulated tariffs (*) are still much more expensive (over £130 pa at headline Ofgem headlne cap / TDCV (reduced) consumption)

If you can do the budgetting yourself - then as above EOn Next - the standard domestic supplier - does do monthly variable direct debit.

But is that who you are with ?

Do you really mean EOn Electricity and Heat (EOn Heat ?) (or did you use heat for gas ?)  - as in their community / district heating unit.

EOn Heat - are IIRC their block based (community / district) supplier of HW / heating systems ?  As IIRC from the few posts here on them - their rates for heating are not exactly cheap - and they are not covered by Ofgem cap either.

kYuZz

Thank you @Scot_39.

I have 2 separate deals, one with E.ON Next and one with E.ON Heat (district heating).

My E.ON Next balance has been hovering around  £100 constantly, all year round, no matter the season.

My E.ON Heat balance has been slowly and constantly growing, all year round, no matter the season.

After reading the replies here, I'll see if I can get a variable direct debit and refrain from cancelling my DDs.

Thank you all.

dunstonh

Here's the situation - Over the past months, both my accounts have been in credit by approximately £120-150.

Its normal to be in credit as you go into Autumn/Winter.      Its usually safe to draw any excess around late April/Early May as that is when the cycle generally starts again.

If your payment is set correctly for your use, you would expect to be around 2-3 times your monthly payment in credit at this point (variances will exist depending on your heating bill and the how cold it gets.  2022 was milder in most areas.  So, it was not a surprise to end up in April/May with a bit of credit.  However, if its colder in Winter 2024 (and Autumn 2023 appears colder so far) then that extra credit would soon be eaten up.

RHemmings

I'm about £300 in credit now. I see that online I have the option to reduce my direct debit, and will do so because otherwise I'm going to end the winter in credit.

Swipe

Just had my latest bill a few days ago and I'm thankfully £600 in credit. Not sure what your gripe is.

EssexHebridean

Something to bear in mind is that although energy prices have fallen since this time last year, as you rightly say, we're not getting the £66/£67 per month through the winter period this year. This means that in real terms most households will actually pay more for energy this winter, than last. I'd also bear in mind that the credit you are talking about totalled to £400 - and you have already used some of it, it's not all just sitting there as credit. With both these things in mind I'd suggest not doing anything with your credit until next spring - and keep a close eye on your energy accounts through the winter as yes, you may in fact need to increase the DD a bit.