Energy: Billing

(asked on 9th October 2024) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether he has had discussions with Ofgem on guidance to energy companies on the maximum credit they can hold of their customers' funds before reducing the direct debt or offering a refund.


Answered by
Miatta Fahnbulleh Portrait
Miatta Fahnbulleh
Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 14th October 2024

Ministers have discussed with Ofgem the need to drive higher standards of service for energy customers.

Ofgem requires suppliers to ensure that payments are set to avoid building up excessive credit balances, including taking regular meter readings. Excess credit balances should be refunded promptly, upon request.

Direct debit payments are designed to be flat across the year, meaning that energy accounts tend to build up a credit balance over the summer, when energy use low, with the reverse occurring over the winter months.

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