Millions of Octopus Energy customers get £178 message on energy bill changes

As the weather gets warmer, many households will start to use less energy which will see their energy bills go down.

This means customers on direct debit who are on a fixed tariff may start to overpay as they are not spending as much on their electricity.

As customers start expecting their bills to come down, they may be surprised to see their bill stay the same or their account credited.

Money that has been ‘overpaid’ during these warmer months is stored and used when the demand for energy is higher.

This means that during winter when bills tend to increase, the energy supplier will take the money from the credit within one’s account.

However, some people may find themselves hundreds of pounds in credit, at which point it may be worth considering some or all that money back.

Customers are entitled to do this at any point, but they should always consider carefully before claiming all of their credit as it could leave them paying more during winter.

The average household is £178 in credit, research has shown.

Suppliers should review direct debit payments over certain periods to ensure households aren't building up too much credit.

Answering a question on why some customers may find themselves in credit, Octopus Energy said: "Most people use more energy in winter and less in summer, but pay the same amount each month via direct debit.

“That means you build up credit during the summer to help towards your higher winter bills.

"Our balance forecast tool tells you if your balance is on track. If you pay monthly by direct debit, and you're on a standard fixed or flexible tariff, you can use the balance forecast to see how your payments will cover your energy usage over the next 12 months.

"If you're building up too much credit, send us a meter reading to make sure your energy charges are up to date.

“If you have a high amount of credit, you can request a refund online or get in touch.

"If you're worried about your payments, here's how we can help if you're struggling to pay for your energy."

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The message to customers comes amid reports that Octopus Energy has become Britain's largest domestic electricity supplier by customer numbers.

The company added 1.3 million customers following its takeover of Shell Energy late last year, Ofgem data showed.

At the end of 2023 Octopus Energy had a 22 per cent share of the electricity market compared with British Gas at 20.3 per cent and E.ON (EONGn.DE), opens new tab with 16.8 per cent, the data showed.