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UK Households Sit on £3 Billion Energy Credit
15 Apr
Summary
- Over half of UK households have energy credit.
- Total credit held by suppliers is £3 billion.
- Average credit per household is nearly £200.
As winter concludes, a significant portion of UK households, exceeding 57%, find themselves with credit balances in their energy accounts. Energy suppliers are currently holding approximately £3 billion in unused direct debit payments. This collective credit is £179 million higher than the previous year, a rise attributed to a milder winter and static direct debit amounts not reflecting energy rate fluctuations.
Ideally, households should utilize most of their credit during colder months and rebuild it in spring and summer. However, many are opting to leave their credit with suppliers to offset future payments. While 31% plan to request a refund, the majority aim to reduce upcoming bills. Uswitch advises maintaining credit equivalent to about two months' average payments for winter cost protection.
This development occurs against a backdrop of fluctuating energy prices. While Ofgem's price cap saw a 7% reduction from April 1, 2026, falling to £1,641, a substantial 18% increase is predicted from July 2026. This potential rise, driven by Middle East conflict impacts, could add £288 annually to household bills.
