Energy suppliers hold £2.9bn of customer credit

What Ofgem published

Ofgem published domestic energy customer credit balance data for July 2025 to June 2026 on 5 October 2026. The figures cover live domestic customer energy accounts held by people who pay by fixed Direct Debit and have paid for the energy they use. All figures are net of unbilled consumption, so the amount of energy used but not yet paid for has been removed. Credit held by closed accounts and accounts on non-domestic tariffs has also been removed. The data covers only households whose energy account was in credit on the last day of each quarter from July 2025 to June 2026. Ofgem publishes this data at the end of March, June, September and December each year, and the full data is available in the retail market indicators section of Ofgem's data portal.

The 12-month rolling average household credit balance rose to 200 pounds, an increase of 1 pound compared with the year ending March 2026. Ofgem says the 12-month rolling average removes seasonal fluctuations in energy consumption and credit balances, providing a clearer view of the underlying trend. That matters because the headline figures move with the seasons, and the rolling average is the measure that strips that movement out. The data represents approximately 16 million households who pay for their energy by fixed Direct Debit and hold a credit balance.

Why you are in credit in June and that is normal

Fixed Direct Debit spreads an estimated year of energy cost into twelve equal payments. Usage is not equal across the year. It is low in summer and high in winter. So payments exceed usage from roughly April to September, and fall short from October to March. A credit balance in June is the system working, not a fault. Ofgem makes this point directly, saying the amount of credit held in energy accounts goes up and down during the year, with more credit in summer and more spent in winter as more energy is used. The regulator also says these increases are consistent with seasonal trends, as household energy use usually falls during the summer months, allowing credit balances to increase.

This is why the 12-month rolling average exists. Ofgem says it removes seasonal fluctuations in energy consumption and credit balances, providing a clearer view of the underlying trend. Read the June figure on its own and it looks like a rise. Read it against the same month a year earlier and the change is 4 pounds on the average household balance. Read the rolling average and the picture is steadier still. Ofgem also notes that each household may have different experiences with how much credit they have at different times of the year, which is a fair description of a system built on estimates. If you pay by fixed Direct Debit, a balance sitting in your account in June is the expected result of the payment method you chose, not evidence that something has gone wrong.

When a credit balance is actually a problem

A balance that is still growing in January or February, after a full winter of high usage, suggests the monthly payment is set higher than the household needs. So does a balance far above one month's typical payment at the end of winter. The seasonal pattern says credit should be spent down from October to March. If it is not being spent down, the payment amount and the usage no longer match. That is the point at which a review is worth asking for. A customer can ask their supplier to review the Direct Debit amount, and can request a refund of credit. Ofgem says details about how energy suppliers should treat customer credit balances are included in the rules in energy licences that set out consumer standards and what suppliers must do to stay financially stable. Suppliers are expected to deal with such requests under those rules.

There is a limit worth knowing about. A supplier may decline to refund the whole balance going into winter if it would leave the account unable to cover expected usage. That is a normal reason rather than an excuse, and it follows from the same logic that created the balance in the first place. The money is not being withheld improperly. The data does not show that, and the seasonal pattern explains most of what the figures contain. The practical question is not whether credit exists in June. It is whether the credit is being used up over the winter as intended, or whether it keeps climbing because the payment is set too high. If it keeps climbing, ask for a review. If the answer is unsatisfactory, the complaint routes below are open to you.

How to check your own position

Find the current balance on the latest statement or in the online account. Compare it with the monthly payment and with the same month a year earlier if that figure is available. A balance of roughly one month's payment in late summer is a different thing from a balance of several months' payments in midwinter. Submit an up-to-date meter reading first, because a balance built on estimated readings may not be real. If the supplier has been billing on estimates, the balance shown may reflect assumed usage rather than actual usage, and a reading can change the picture quickly. Only once the reading is up to date is the balance worth acting on.

Then, if the balance still looks high, ask for a Direct Debit review in writing. Putting the request in writing creates a record and a date. If the supplier does not respond properly, use its complaints process. A customer who is unhappy with how an energy supplier has handled a complaint can take it to the Energy Ombudsman after eight weeks or where deadlock is reached. Deadlock means the supplier has given its final answer and the dispute is not resolved. Keep the statements, the meter readings and the correspondence together, because the ombudsman will work from those. None of this requires changing how you pay. It requires knowing what the balance is, what it should be at this point in the year, and what to do if the two do not match.

What happens to the money if a supplier fails

Ofgem operates arrangements under which customers of a failed energy supplier are moved to a new supplier. Domestic customers' credit balances are protected under those arrangements. This is the question people ask most often about credit balances, and the answer is that the balance does not disappear with the supplier. Ofgem's own page on what happens if a supplier goes out of business sets out the detail, and it is worth reading directly rather than relying on a summary. The protection is one reason the regulator monitors the level of credit balances held across the market at all. A system in which suppliers hold billions of pounds of customer money is a system the regulator needs to be able to see into.

That monitoring is what produces the quarterly data discussed above, including the 2.9 billion pounds total and the 182 pounds average at the end of June 2026. The figures are published four times a year, at the end of March, June, September and December, and the full data sits in the retail market indicators section of Ofgem's data portal. For a household on a fixed Direct Debit, the useful takeaway is narrow. A credit balance in June is normal and expected. A balance that keeps growing through the winter is the signal to ask for a review. And if the supplier fails, the credit balance is covered by the arrangements Ofgem operates.

Source: Ofgem: domestic energy customer credit balances.

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Frequently asked questions

Is a credit balance in June a sign that a supplier is holding too much of my money?

No. Fixed Direct Debit spreads an estimated year of energy cost into twelve equal payments, and usage is low in summer and high in winter. Payments exceed usage from roughly April to September, so a credit balance in June is the payment method working as designed. Ofgem says credit balances go up in summer and are spent down in winter.

When does a credit balance become a problem?

When it is still growing in January or February, after a full winter of high usage. That suggests the monthly payment is set higher than the household needs. So does a balance far above one month's typical payment at the end of winter. At that point a Direct Debit review is worth asking for.

Can I ask for a refund of the credit on my account?

Yes. A customer can ask their supplier to review the Direct Debit amount and can request a refund of credit. Ofgem says the rules in energy licences set out consumer standards and what suppliers must do to stay financially stable, and suppliers are expected to deal with such requests under those rules.

Can a supplier refuse to refund the whole balance?

A supplier may decline to refund the whole balance going into winter if it would leave the account unable to cover expected usage. That is a normal reason rather than an excuse, and it follows from the same logic that created the balance.

What should I check before asking for a review?

Submit an up-to-date meter reading first, because a balance built on estimated readings may not be real. Then compare the balance with the monthly payment and with the same month a year earlier if available. If it still looks high, ask for a Direct Debit review in writing.