Figures in this article are taken from Ofgem publications, with the date of each stated inline. Energy prices change every quarter, so check Ofgem's website for the latest price cap.

How much credit do energy suppliers hold?

According to Ofgem's data on domestic customer credit balances (published 30 March 2026), households paying by fixed direct debit had an average of £3.17 billion in credit with their suppliers across 2025. That was £113 million lower than in 2024. The average balance per account was £199. The data covers around 17 million households paying by fixed direct debit and excludes closed accounts.

Separately, in October 2025 Ofgem said that 1.9 million closed energy accounts still held credit, worth around £240 million in total. If you've moved home or switched supplier in recent years, you can contact your old supplier to ask about any credit left on a closed account.

Why credit builds up

Most fixed direct debits spread the year's estimated cost evenly across 12 months. Because households use more energy in winter, accounts often build up credit in the warmer months and draw it down in the colder months. Ofgem's data shows credit balances follow this seasonal pattern. A balance that stays high all year round, though, may mean your direct debit is set above what you use.

How to check whether you're in credit

• Submit an up-to-date meter reading (smart meters should send readings automatically).

• Check your latest bill or online account to see whether you are in credit or debit.

• Compare your direct debit with your actual usage over the past year, which is shown on your annual statement.

Asking for credit back

Ofgem says you can contact your supplier to claim credit back at any time. When you switch supplier, your old supplier should refund any credit in your final bill, and you could get compensation if they don't. If you ask for a refund, your supplier may review your direct debit at the same time, which could mean higher monthly payments if your balance would otherwise fall short in winter. Cancelling a direct debit altogether may mean you're moved to a different payment method or tariff, so check with your supplier first.

If you're not happy with how your supplier handles your request, you can make a complaint to the supplier. If that doesn't resolve it, you can take it to the Energy Ombudsman, a free, independent service. Escalation is normally available after eight weeks from raising the complaint with the supplier, or earlier if the supplier issues a deadlock letter.

The energy price cap

Ofgem's price cap limits the unit rates and standing charges suppliers can charge on standard variable (default) tariffs. It doesn't cap your total bill, which depends on how much energy you use.

For 1 October to 31 December 2026, Ofgem set the cap (announced 26 August 2026) at £1,723 a year for a typical dual-fuel household paying by direct debit. That is 4% higher than the previous quarter's £1,663. Average direct debit rates for this period are:

• Electricity: 26.32p per kWh, standing charge 54.83p per day (Ofgem says VAT is removed from electricity bills between 1 October 2026 and 31 March 2027)

• Gas: 7.97p per kWh, standing charge 29.68p per day

Rates vary by region and payment method. Ofgem is due to announce the cap for January to March 2027 on 25 November 2026.

Direct debit and prepayment: standing charges

From 1 April 2024, Ofgem set prepayment standing charges at the same level as direct debit standing charges. When it announced the change in February 2024, Ofgem estimated it would save prepayment customers around £49 a year and add around £10 a year to direct debit customers' bills. Unit rates still differ by payment method. For the October to December 2026 cap, average prepayment unit rates as reported by MoneySavingExpert were 25.52p per kWh for electricity and 7.70p per kWh for gas. These are about 3% lower than the direct debit rates for each fuel.

Background: the 2024 Big Energy Credit Claim Back campaign (historical)

In May 2024, campaign groups Warm This Winter and 38 Degrees launched the "Big Energy Credit Claim Back", which encouraged direct debit customers to ask suppliers for their credit back. At the time, the campaign said that 32% of households were in credit year-round and that 38% of those in permanent credit were on low incomes. The figures come from its own research, and the methodology wasn't published. The campaign has since closed.

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