Energy bills payers must check this now – one in 10 have £300+ stashed away | Personal Finance | Finance

If you’re an energy customer, you may be sitting on a hidden savings pot you didn’t know you had. Except, it’s not earning you interest, and you didn’t open it. It’s the pile of credit that could be building up with your energy supplier. According to Uswitch, UK energy companies are currently holding onto a staggering £3billion of our money, with the average household in credit by nearly £200. One in 10 homes had over £300 stashed away when the research was carried out in March, and a further 4% had more than £500.

If you pay by direct debit, your supplier estimates your yearly usage and smooths your payments out over 12 months. In theory, you build up credit in spring and summer when you use less energy, then burn through it in winter when the heating is in use. At least in principle. Yet millions are still hundreds of pounds in credit.

During the energy crisis, when prices were more volatile, it made sense to keep a buffer just in case. But with the price cap dropping and bills balancing out, there’s less reason to let your supplier sit on your cash.

If you’re wondering why suppliers don’t just hand the money back, you won’t be surprised to hear they gain out of holding it. While your credit remains in their accounts, they’re free to (responsibly) use it as working capital, earning interest and boost their bottom line – even as they post multi-million-pound profits.

Meanwhile, you could be using the money to cover your own bills. Don’t be too hasty, though. Experts generally suggest customers keep around two months’ worth of payments in credit. You want to leave enough to help with winter bills. But any amount above that should be fair game to reclaim.

Elise Melville, energy expert at Uswitch, recommended first submitting an up-to-date meter reading to ensure your latest bill is accurate. Next, contact your supplier to request a refund.

You can do this by phone, email, or your online energy account. Let them know how much you want refunded – remember not to take too much, keeping that two-month buffer. The refund should then arrive within two to four weeks.

Don’t let your energy credit gather dust in your supplier’s coffers. Check your balance and reclaim what’s yours.

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If you’re feeling strapped for cash, you might be able to claim a grant you have no idea you’re eligible for. I spoke with a pensioner last week who had lost her winter fuel payment after only slightly exceeding the Pension Credit threshold. Worried for the winter, she stumbled across TSB Bank’s Lightning Reach Portal by chance when an advert was posted on Facebook last October.

The portal helps connect people to personalised support, such as grants, benefits, and general bill help. By using it, Karen Ballington, 69, from Lancashire, was matched with two grants.

One was the Park Homes Warm Home Discount, worth £150, as well as a grant from the National Health Service Pensioners’ Trust for retired NHS workers, taking the overall payment up to £300.

It was heartwarming to hear Ms Ballington, who isn’t eligible for other Government benefits, speak on how surprised she was to receive some help.

To check if you can benefit, visit lightningreach.org and create a profile. Based on the information you provide, you will then be matched with any support you may qualify for through the 2,500 schemes logged on the portal.

You can then either apply through the portal, or you’ll be signposted to claim directly through whichever organisation has a grant available.

Other success stories include ex-veteran Peter, 65, in Liverpool, who secured £1,000 over a year through the Royal British Legion’s Everyday Needs Grant to help with fuel costs.

And Nidhi, from Slough, a single mother of two. With a background in teaching, she found she qualified for up to £1,500 to clear some debt through the Teaching Staff Trust.

If you’re struggling to make ends meet, visit the portal and check your eligibility for financial help.