Martin Lewis reveals exact month you could get £100s of credit back | Personal Finance | Finance
Martin Lewis has revealed the exact month when millions of households could claw back £100s in overpaid energy credit.
Timing could be crucial as families battle rising costs this winter, and he is urging consumers to take advantage of the energy Direct Debit cycle.
On his blog, the expert said energy companies use an annual cost estimate to set monthly Direct Debit payments, smoothing bills throughout the year to avoid winter price spikes.
This means households are expected to be in credit during the low-energy summer months and in debt over the winter.
However, this system isn’t perfect.
Companies often base payments on incorrect estimates, leading to excessive credit or unexpected debt for customers.
Lewis stresses that staying on top of your energy usage with regular meter readings is key to ensuring accurate billing.
The critical months to assess your energy account balance are May and November, according to Lewis.
May: Energy debts from winter should balance out, and credit levels should be minimal. If your account still shows significant credit—more than a month’s worth of Direct Debit payments—it’s time to request a refund.
November: As the summer’s low-energy period ends, credit levels should peak, ideally at two to three months’ worth of Direct Debit payments. Anything significantly higher may indicate overpayment.
If you believe you have overpaid:
- Check Your Account: Ensure your readings are up to date and your account balance reflects current usage.
- Contact Your Provider: Ask why your account is in significant credit and request a refund if applicable.
- Escalate Complaints: If the supplier refuses, file a complaint and, if unresolved, escalate it to the Energy Ombudsman.
Policies vary across energy suppliers.
Some, like Scottish Power, offer automatic refunds for overpayments, while others, such as British Gas, require customers to actively request refunds.
Lewis also advises against ditching Direct Debit entirely, as it typically secures the lowest rates.
Instead, ensure your payment levels align with your usage to avoid overpaying.
With energy prices remaining volatile, monitoring your bills and reclaiming excess credit could help ease household budgets.
May and November are key dates to ensure your Direct Debit is working for, not against, you.
