As many consumers struggle with sky-high energy bills, research from Uswitch.com, the independent price comparison and switching service, reveals that over 13 million homes (52%) could reclaim up to £1.2 billion worth of credit between them.
The number of households in credit with their energy supplier has risen to 52% compared to 47% in 2013 with the average household in line to claim £86
The milder winter means some households paid for more energy than they used
At the same time, almost four million homes (14%) are in debt to their energy supplier with the average energy debt per household standing at £128
Uswitch urges consumers to give up-to-date meter readings to their energy providers to take control of their bills.
With over 13 million (52%) households in credit with their energy supplier, Uswitch.com is calling on households to take regular meter readings to improve bill accuracy. Many people used less energy this winter due to the milder weather and concerns over cost, and as a result, over half (52%) are now in credit with their supplier by an average of £86. Over a fifth (21%) are in credit by over £100, with 260,000 households across the country potentially being able to reclaim more than £500 back from their supplier.
However, as recently reported by Uswitch, almost four million households (14%) are in debt with the average amount owed standing at £128 – a collective sum of over £464 million across the nation. SSE’s recent annual results also revealed that the total aged debt – customers who are more than six months in arrears – shot up to £118m from £90m a year earlier as millions of households across the country have struggled to stay on top of bills.
The big six energy companies have committed to reviewing all direct debit accounts every 12 months and refunding any credit directly back to customers. Ofgem has also ruled that they must refund any credit on the request of the customer at any point in the year. With Spring the best time to claim back any money, after the high usage winter period, Uswitch is urging customers to provide up-to-date meter readings to their supplier and discuss with them whether there is excess credit or debt on their account.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “With temperatures rising, now is the time for people to spring clean their energy accounts and find out if they are in credit with their supplier. Energy bills are often based on estimations rather than actual usage and so they can be very far off the mark. Reclaiming this credit has never been easier as new rules from Ofgem mean suppliers must refund this money to customers whenever they request it.
“However, those who are in the black should remember that this may only be temporary as accounts can fluctuate between credit and debt depending on the season. Being in credit can provide a buffer against the colder months when usage typically goes up. The best way for people to stay on top of this and ensure their bills are as accurate as possible is to take regular meter readings.”
FOR MORE INFORMATION
Charlotte Nunes
Phone: 020 7148 4664
Email: charlotte.nunes@uswitch.com
Twitter: @uswitchPR
Notes to editors
Research referred to in the notes below was conducted online by YouGov Plc on behalf of Uswitch.com. Fieldwork took place 3rd to 6th February 2014, amongst 2,138 adults with decision making involvement with energy suppliers. Data is weighted to be representative of GB adults. Previous research referred to in the notes below was also conducted through YouGov. Fieldwork took place from 13th to 15th February 2013 among 2,106 people with decision making involvement with energy suppliers. Data was weighted.
‘Thinking about your most recent energy bill from your supplier, which of the following best applies to you?’ 52% of respondents answered that they were in credit. 52% of 26 million households is 13 520 000 households. In 2013, 47% of households were in credit with their energy supplier. The mean amount of credit in 2014 was £86.44. 14% of households were in credit between £101 and £200, 4% were in credit between £201 and £300, 3% were in credit between £301 and £500, and 1% were in credit by more than £500. Total = 21%. 1% of 26 million households is 260,000.
See point above. 13 520 000 households in credit owing an average of £86.44 each equates to £1,168,668,800 in total.
Total primary energy consumption for energy uses fell by 0.6 per cent from 2012. When adjusted to take account of weather differences between 2012 and 2013, primary consumption fell by 1.8 per cent. Final energy consumption was 0.5 per cent higher than in 2012, but down 0.3 per cent on a temperature corrected basis. Source: DECC https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/296183/pn_march_14.pdf
In addition, Uswitch research conducted in January 2014 revealed that 8 out of 10 consumers cut down or rationed their energy usage due to the increased cost of energy.
When asked: ‘Thinking about your most recent energy bill from your supplier, which of the following best applies to you?’ 14% of respondents answered that they were in debt. 14% of 26 million is 3,640,000 households. The mean amount of those in debt was £127.52.
See point above. 3,640,000 households in debt owing an average of £127.52 each equates to £464,172,800 in total.
Source: SSE - http://sse.com/media/233175/SSE-Results-Prelim-Statement-2014.pdf
Source: Ofgem - https://www.ofgem.gov.uk/ofgem-publications/64013/directdebitleaflet.pdf
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