Should energy companies have to pay customers interest on money held in credit?
Energy suppliers hold around £2.9 billion in customer credit balances as of June 2026, with the average household in credit having £182. Customers can request refunds at any time and suppliers must return them promptly unless there are reasonable grounds not to. Ofgem rules require suppliers not to be overly reliant on this customer money for working capital but do not require suppliers to pay interest on credit balances.
6 Opinions
This is a tricky one. Part of me says yes. I overpay deliberately during the summer months on gas, rather than adjust my direct debit. It spreads cost. If they had to pay interest, they may stop this option. Those who are poor at budgeting may find themselves more easily getting into debt. Maybe they should have to pay back credit promptly if requested, or give the option of having credit returned automatically, & pay interest if they fail to do so when requested.
Why? Energy companies are trying to help with reduced cost so many hours a week. Just another question which could increase the work load within the company, it all seems to be going well at the moment.
Customers should stay on top of their energy and not allow too much credit
Would we have to pay interest when we're in debit?
Why not? They get to use that money. It's the least they can do. Otherwise, it's a scam.
No, it would overcomplicated already overengineered system. I'd rather created system when clients are credited and the balance is on the other side with reconciliation each quater or 6 months.