25 April 2023 , 23:01
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Energy suppliers are sitting on more than £6.7billion of customers’ money, research suggests.
More than 16 million households have now built up credit balances with their supplier, according to website Uswitch.
The amount has soared from £5.3bn last year due to a mild winter and hard-up families trying to reduce their energy use.
Households also benefited from £400 in Government energy support between September and March.
The number of households in credit has risen by five million on this time last year, a survey by Uswitch suggests. It also found that more than eight million customers now have a credit balance of over £200.
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As a result, the amount of debt that households owe to suppliers has fallen, from £1.2billion to £920million.
Amount of credit being held by energy firms has soared (Getty Images)But those in debt owe more, with the average rising from £188 to £234 after prices surged.
The survey also looked at why those in credit leave the money with suppliers.
Simon Francis, of the End Fuel Poverty Coalition, said: “This is an astronomical amount of money that suppliers are just sitting on. It should be returned to the hard-pressed households who have been paying their monthly direct debits and struggling – sometimes dangerously – through winter.
“There should be a review of how these balances are amassed. Suppliers should return the money automatically, rather than customers having to ask for it back.”
Richard Neudegg, of Uswitch.com, believes suppliers could be setting direct debits too high.
He said: “We’d expect to see people exit winter with little or no credit.”
He advised customers in credit to ask suppliers to refund their money, and check their direct debit is at the right level.