Some utility companies are being cheeky and employing a sneaky tactic to allow themselves to sit on your money, earning themselves interest on your money. So how do they do this? It’s via the direct debit scheme.

Millions of people pay their utlities via direct debit – it’s easy to setup, easy to manage, and often cheaper than paying by cheque. Many energy companies take the same amount each month, no matter how much energy you use. Your account will usually only get reviewed every six months or so, so they could end up owing you a lot of money.

Britain has had a warm winter, and April was one of the hottest on record. This means that energy consumption is lower for most people than it has been in previous years, meaning it is likely that many direct debit customers are paying more than they should be. In France, overpayments automatically get paid back to the customer once a year. In Germany, customers get automatic repayments of an overpayments that they make. In the UK? If you have made an overpayment of less than £150, you must apply to get the money back. Even worse, accounts are only reviewed every six months, and meters only need to be read once every two years.

Energy companies all claim it is easy to get overpayments back when you request them, but that means keeping a close eye on your bills. Whilst the money is sitting in the utility company’s bank account, it earns interest – but this interest will not get passed on to you when you request your money back.

And the moral of the story is?
A spokesman for EnergyWatch summed it up nicely “It’s impossible to get accurate figures on just how much these companies are sitting on, which is an issue in itself. Never take a bill at face value as comapnies cannot be trusted to give you an accurate bill unless you take a meter reading.”

If you think you have made overpayments and are due money back, these are the steps to take:
- Take a meter reading.
- Contact your supplier with the meter reading. They should then send you a bill based on the reading.
- If you are in credit, request a refund. The company has ten working days to pay the money owed back to you.
- If you are unhappy about your treatment by the energy company, you can complain to the Energy Supply Ombudsman.
- Vote with your feet – if you are unhappy with your current supplier, switch! It is worth reviewing your bills every year anyway to see if you can cut your bills by using another supplier.

Although it is a little more hassle, it is worth keeping a close eye on your bills; Take meter readings at regular intervals and send these to your supplier to ensure that your money gains interest for you, rather than for the energy companies!

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