“SWIFT ACTION” REQUIRED TO PREVENT SUPPLIERS FROM USING YOUR CREDIT BALANCES AS THEIR BANK Auto energy switch site Flipper is urging Ofgem to speed up plans to prevent energy companies from holding on to an estimated £1.4bn in customer credit balances.
“Sadly, not all suppliers are forthcoming when it comes to refunds,” added Barry who heads up Flipper that analyses the market every month to deliver continuous savings to members.
In March the energy watchdog announced proposals to ensure suppliers are “not holding “Ofgem’s report said it feared the overpayment funds were being used to fund "unon to more of customers’ money than absosustainable business practices”, which is lutely necessary”. unacceptable and shouldn’t be allowed to “I’m delighted Ofgem are looking into the mat- continue.” ter, but with evidence of credit balances up to £1,000 to be returned, swift action required,” The UK’s Energy Ombudsman Ed Dodman has the problem of unrefunded credit balancsaid Barry Hayward, managing director of es accounted for more than 1,000 complaints Flipper. to the body in 2020 alone. “Hoarding on to cash is real bugbear to Consumer champions Which? Say if you are bill-payers, especially now with consumers credit to your energy firm, you can request a facing financial hardship due to covid,” said refund at any time and your energy supplier Flipper’s managing director Barry Hayward. must do so promptly, unless there are reasonable grounds not to. “The retail energy market in Great Britain needs to be fair rather than money just being It will likely check whether your payments and allowed to languish in suppliers’ coffers credit will cover your predicted use over the through overpayment. next year, and require an up-to-date meter “If the regulator’s proposals are confirmed the reading. rules would require suppliers to refund credit balances each year from 2022 but that will be Flipper has hundreds of thousands of members who pay an annual fee of £30 to be autoo late for many people.” tomatically switched to the best deal, with the fee only kicking in when savings are made. Households who pay their energy bills through a fixed direct debit can overpay Auto-switching was introduced by Flipper with during the summer – when less energy is used – and build up sizeable credit balances other websites introducing similar schemes. Unlike comparison websites auto-switchers which reduce again in the winter. are not paid by the energy providers so trawl the whole of the market and carry out the switch for you. 32
