Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Energy companies to offer direct debit refunds to British households

Four of the big six energy companies will now automatically refund direct debits to customers who are in credit, according to DECC.

While EON were already doing this, negotiations chaired by Energy and Climate Change Minister Greg Barker have resulted in EDF, British Gas and SSE plus First Utility following suit and passing consumers money back to them.

DECC has been in discussions with energy companies to provide customers with an automatic refund if they have a credit balance over a minimum threshold (varying between 1p and £10) at annual review point. Alternatively, the money can be rolled over to take off the next bill if the customer prefers.

Minister for Energy and Climate Change Greg Barker said: “This is important and welcome news for the 55 per cent of energy customers who chose to pay by direct debit. The Coalition is committed to helping hardworking people reduce the cost of energy bills and this will ensure that customers are rightly returned the cash that is theirs without having to ask.

“There is still more to do but this builds on the Coalition reforms to the energy market, and to have five of the major energy companies agreeing to this new approach will go a long way towards rebuilding consumer trust. I hope other energy companies will adopt this approach very soon.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.