Energy firms could be forced to return millions of pounds to Britons under plans being considered by ministers.
Suppliers have been accused of having taking more money than necessary after building up billions of pounds in surplus funds.
Last year an independent report by Ofgem revealed suppliers were holding as much as 40 per cent of a customer's total annual bill on account.
Suppliers are holding as much as 40 per cent of annual payments in reserve
Jacob King
With energy prices soaring over the last 12 months, the amount of surplus cash kept by energy firms has also risen.
Ofgem said in 2021 that the automatic repayments could see as much as £1.4billion returned to customers, an average of £65 per household.
Since then energy prices have jumped by as much as 80 per cent.
Yesterday energy minister Amanda Solloway told MPs: "Suppliers should not be sitting on money that is not needed to pay for the energy that a customer is using."
"Accounts should not build up an excessive credit balance," she added.
"It is the customers’ money."
Solloway yesterday gave MPs an "assurance' she would look into automatic repayments during a parliamentary debate on energy bills.
It comes after Energy Secretary Grant Shapps last month admitted he had also been impacted by the excess costs.
Amanda Solloway said she was looking at repayments
He said: "I’ve had the experience myself where the energy company just arbitrarily decides to put an outrageous figure into the direct debit."
Labour's Ed Miliband criticised the Government for failing to take action earlier, saying it was "shameful" companies were keeping such large credit balances on customers’ accounts.
He said: "For 13 years, the Conservatives have kept energy bills too high and made our energy system too weak with their failure to embrace the clean energy sprint we need and to get off expensive, insecure fossil fuels for good."
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