Asking for energy credit back.... sensible or stupid?

[Decafflatteplease]

As above.

We currently pay £280 a month on energy (have recently got it down from £300) and we hardly ever use the full amount so credit is building. I know this is the point of paying by DD so bills are the same each month and you can go over in winter as use less in summer. But there was maybe only one month we used more than the £300 bill I think it was December and that bill was £400.

So now we are £1000 in credit. I know we are going into winter so potentially will need that credit once the heating goes back on etc but do we really need that much?

I'm debating asking for most of it back as we could really do with the cash for school uniforms etc.

But then that would mean we really have to stick to the £280 or less even in the winter months. I don't know if this is possible.

For context we have large draughty 1800s house, 6 people, one (me) at home all day. Hot water tank so.needs to go on twice a day. Heating not on in day when only me at home and only have heating Oct to march. Gas is 9p.per kWh, electric 30pkwh. We barely use the oven , have an air fryer etc

Can anyone advise? Thanks!

How much are you currently using a month?

We leave ours in. The moneys already out of our account so we know we don’t have it to spend. We are cold enough in winter, even with that buffer, and end up owing a little. I wouldn’t ask for it back.

I'm keeping my 1k credit as cushion when I'm moved to universal credit.
If anything similar might be on the cards for you I'd keep the money with the energy company.

Unless your desperate leave it as a cushion for winter

I know people bang on about interest on it but it would be minimal and quite happy to sacrifice that for ease

I had £1,500 credit built up.

I worked out my energy usage over the whole 12 months at current prices and realised that £500 credit was enough so I got a refund on the rest.

Can you work out what you used last winter so realistically how much credit you need to have in hand?

I would get some refunded or just lower your direct debit for a few months to run it down

I'd lower your direct debit by £50 for 3 months.

I think they have to give it back legally down to the last £200 . Octopus are very flexible i must say .

You are unlikely to get it all back.
Can you have a look online, and see what they will let you claim back? For example, my Octopus app won't actually let me take more than they think is reasonable.
Only caveat:are you with someone like BG, on 6 monthly billing?

Thanks all...

To answer some questions...

We are on monthly billing

Current bills the past few months that have been between £150-200 all in. Obviously no heating on ATM

We recently put our DD down from £300 to £280 they wouldn't let us lower it any more than that

We could really do with the cash at the moment ☹️

But I worried that if we get all or most of the money back then in the winter we won't be able to stick to £280 a month usage and then we will be in debt. It's easy not in the summer to say oh yeah we'll cut down etc but come the reality in the winter it's obviously harder!

I always ask for mine back and get patronised to f*ck by EDF telling me I should keep it as a (massive) cushion. Unfortunately it takes me having to threaten to refer them to Ofcom to get it back

I'd take most of it out and put it in a savings account. Better that you earn the interest than the energy companies.

also depends on your tariff - i tell everyone to go on Octopus tracker tariff - half the price of anything else

I hope you mean Ofgem!

if you need it for cash, then maybe ask for £250 back. You’ll still have a de ent amount saved.

https://blog.moneysavingexpert.com/2023/3/martin-lewis--energy-bill-credit---how-much-is-too-much--stop-th/

Article explaining that in May is when you should have least credit, and November the most. Not sure if it’s helpful or not.

You can get last winter's actual usage from your bills and see how much it cost you from say November to March and then work out if you're covered or will have excess. Remember that your monthly bill in winter months could be double or triple what it is in summer, but it's easy to see what your actual usage is from your past bills.

I asked for a refund at the start of the year. They refunded me the same amount four times, leaving me in massive debt. Only one of those four times ever made it to my bank account, the rest remains in space.

I don’t know anyone would be in credit, beyond a couple of hundred pounds. You know how much interest you could make nowadays even with an instant access saving account. Why would you want the energy company making interest off your credit.

I would ask for half of it - that seems plenty. Even if your energy use doubles, you have enough. If the energy company is being painful, switch and put half of the refund aside. We switched several times as the only means to get thousands back. It is sheer greed to keep so much of your money for so long. I now pay on receipt of the bill - maybe more pricey but less headache and I don’t think the DD saving is enough for my time. I am quite capable to putting some money aside in summer for winter.

Update...got it back no problem! Left a little bit in just incase.

Am I right in thinking now that we really have to try to stick to our £280 DD as otherwise we will owe them money?

Chances are that continuing with £280 DD will still build up a balance before winter - it’s August snow. Worst case scenario is that they raise your DD a bit in spring. They won’t be chasing you for a large lump sum. And you’ve left some balance as well.

August NOW ffs!