Energy: Billing
The question
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
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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