Millions overpaid their energy bills

HOUSEHOLDS IN THE UK WERE OWED AN AVERAGE OF £85 BY SUPPLIERS

ILLIONS of households who have overpaid on their utility bills are owed an average £85 – leaving their suppliers with a staggering £928million in surplus payments.

Direct Debit is one of the easiest ways to pay energy bills and providers typically offer a discount to customers paying in this way.

The level at which a DD payment is set is based on an estimate by an energy supplier of a customer’s usage over the year. But customers may use more, or less than the estimate.

Overpayments arise when a customer’s DD payment is set too high. As a result, they end up paying for more energy than they have used.

Research by GoCompare Energy found that 39% of households have overpaid their energy bills by an average of £85, while nearly a quarter (24%) have made excess payments of over £100.

The research also revealed wide regional differences in overpaid bills.

Households in London were the least likely (29%) to overpay while those in Yorkshire and Humberside top the list with nearly half (49%) having overpaid.

On average, people living in the North East make the largest overpayments (£103), while those in the East Midlands make the lowest (£63.60).

Brits who find they have paid for more energy than they have used can leave the overpayment on their account to offset against future bills.

The “big six” energy firms (British Gas, EDF Energy, E.ON, Npower, Scottish Power and

SSE) have DD policies which cover refunds.

Typically, these companies conduct annual reviews of DD accounts and, subject to an accurate meter reading, automatically refund any overpayments of £5 or more. However, customers with overpaid bills are entitled to ask their supplier for a refund at any point in the year. Providers are obliged to refund them unless there are reasonable grounds not to do so. The survey also revealed that 39% of UK households holding overpaid bills usually leave the money on their account to knock off future bills.