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Energy firms to pay back direct debit customers: Five of the 'Big Six' companies will hand money to homes that are in credit on gas and electricity
Millions of people who pay their energy bills by direct debit are set to receive refunds, it will be announced today.
Power firms have caved in to pressure from ministers and will hand back money to householders who are in credit on their gas and electricity.
It follows criticism that the Big Six are making millions in interest by hoarding money they make when people pay too much during the year.
But one of the big companies – npower – has said it may not follow the other firms in refunding its customers.
Energy minister Greg Barker said householders may wish to ‘vote with their feet’ and switch suppliers if npower refuses to follow suit.
The move comes after an investigation found that power firms are stockpiling up to £2billion of cash from customers.
With more than 13million households paying a fixed amount every month, many are overpaying in the summer, when usage is lower – leading to huge credits on accounts.
Industry experts estimated firms were making up to £36million a year in interest, leading to accusations that they were profiteering from customers.
Following anger from consumers, the companies held a summit with ministers in November, at which they promised to make changes including a refund if an account was in credit by £75 or more.
Further negotiation led to the amount being reduced to £5, which EDF revealed on Friday ahead of the expected joint announcement today.
Mr Barker said: ‘This is an excellent result for consumers worried about energy prices, and this is a good step towards restoring trust in the majority of companies.
‘We have still a lot more work to do, but this shows Coalition ministers are capable of delivering.’
Asked about npower, he added: ‘Consumers will look at other energy firms and may well decide to vote with their feet. It is their money at the end of the day.
A spokesman for npower, which has 3.5million customers in the UK, said: ‘We’re looking at this suggestion but we need to be sure it reflects what our customers want.
http://www.dailymail.co.uk/news/arti...ectricity.html
Millions of people who pay their energy bills by direct debit are set to receive refunds, it will be announced today.
Power firms have caved in to pressure from ministers and will hand back money to householders who are in credit on their gas and electricity.
It follows criticism that the Big Six are making millions in interest by hoarding money they make when people pay too much during the year.
But one of the big companies – npower – has said it may not follow the other firms in refunding its customers.
Energy minister Greg Barker said householders may wish to ‘vote with their feet’ and switch suppliers if npower refuses to follow suit.
The move comes after an investigation found that power firms are stockpiling up to £2billion of cash from customers.
With more than 13million households paying a fixed amount every month, many are overpaying in the summer, when usage is lower – leading to huge credits on accounts.
Industry experts estimated firms were making up to £36million a year in interest, leading to accusations that they were profiteering from customers.
Following anger from consumers, the companies held a summit with ministers in November, at which they promised to make changes including a refund if an account was in credit by £75 or more.
Further negotiation led to the amount being reduced to £5, which EDF revealed on Friday ahead of the expected joint announcement today.
Mr Barker said: ‘This is an excellent result for consumers worried about energy prices, and this is a good step towards restoring trust in the majority of companies.
‘We have still a lot more work to do, but this shows Coalition ministers are capable of delivering.’
Asked about npower, he added: ‘Consumers will look at other energy firms and may well decide to vote with their feet. It is their money at the end of the day.
A spokesman for npower, which has 3.5million customers in the UK, said: ‘We’re looking at this suggestion but we need to be sure it reflects what our customers want.
http://www.dailymail.co.uk/news/arti...ectricity.html
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