£3 Billion in Energy Credit: Should Households Be Reclaiming What They Are Owed?

Millions of UK households are currently leaving money with their energy suppliers but as bills are tipped to rise again later this year, the question many are asking is whether to reclaim unused energy credit or keep it as a buffer. 

According to new data, energy suppliers are holding more than £3 billion in household credit, with millions of consumers unknowingly overpaying through direct debits. While some consumers are choosing to leave funds in place to offset future price rises, others may be legally entitled to refunds, however, not all suppliers make this process straightforward.

At Energy Solicitors, we act for clients facing billing disputes, disputed balances and delayed refunds. This latest data highlights why understanding your legal rights has never been more important.

The scale of household energy credit in 2026

The figures released this week reveal the sheer scale of dormant credit sitting in energy accounts:

• 16 million UK households are currently in energy credit
• The average balance is just under £200 per household
• Total customer credit has risen by £179 million compared with last year
• 12% of households have more than £300 in credit
• 4% are holding over £500 with their supplier

Industry experts suggest that this rise is largely due to a milder winter and direct debits failing to adjust downward as usage dropped, leading to systematic overpayment over time.

Refund or retain? 

Despite such significant sums involved, most households remain reluctant to reclaim their money:

• 31% plan to request some or all of their credit back
• Only 7% intend to reclaim the full amount
• 63% plan to leave the money with their supplier to reduce future bills

With the Ofgem price cap expected to rise again from July, many consumers see retained credit as a form of protection against sudden increases. However, this approach is not risk‑free, particularly if suppliers fail, accounts are closed, or billing disputes arise.

Not everyone is in credit

While billions sit unused in some accounts, the data also highlights a growing imbalance across the market:

• 3.5 million households are currently in debt to their energy supplier
• Combined arrears total £549 million
• Average household energy debt now stands at £157

This contrast underlines widespread billing inconsistencies and raises questions around direct debit accuracy, supplier transparency and compliance with Ofgem rules.

What are your legal rights over energy credit?

Under Ofgem regulations, energy credit always belongs to the customer, not the supplier. 

Energy providers are required to:

• Refund credit on request (unless there is a clear justification not to)
• Issue accurate bills based on up‑to‑date meter readings
• Adjust direct debits where they no longer reflect consumption
• Return credit promptly when accounts are closed

Failure to do so may amount to poor billing practice, maladministration or a breach of licence conditions.

Why now is the time to check your balance

Energy experts recommend maintaining no more than two months’ worth of payments as credit to cover seasonal spikes. 

Anything beyond this may indicate that:

• Your direct debit is too high
• Your supplier is relying on estimated usage
• Your tariff has not been reviewed correctly

With prices forecast to rise again later in 2026, unresolved credit issues now could turn into serious disputes further down the line.

How Energy Solicitors can help

If you are concerned about energy credit, delayed refunds or billing accuracy, our specialist team can:

• Review supplier billing and account conduct
• Challenge withheld or disputed credit balances
• Act where complaints have stalled or failed
• Support claims linked to account closures or supplier changes

Whether you are a household or a business customer, energy credit disputes are legal issues, not just administrative ones.

Take control of your energy account

If you believe you are owed money or your supplier is making it harder than it should be to access your credit, specialist legal advice can make all the difference.

Contact our litigation experts today.