Martin Lewis urges customers of energy suppliers to demand cash back

Martin Lewis has shared his latest piece of money saving advice that could bag you £180
Martin Lewis has shared his latest piece of money saving advice that could bag you £180 -Credit:No credit

Money-saving legend Martin Lewis has urged customers of energy suppliers to claim a potential £180 rebate.

Martin points out that May is the ideal time for consumers to check their bills and account balances. This is because those who pay by monthly direct debit usually pay a set rate, which doesn't always align with actual energy consumption.

As energy usage typically drops during the spring and summer, many customers end up with credit after overpaying relative to their consumption, reports the Manchester Evening News. The team at MoneySavingExpert have astonishingly revealed: "Energy firms are sitting on over £3 billion of our cash - around £180 per household. And a decent whack of that should be back in people's pockets."

Martin was quoted advising customers: "So if you've done an up-to-date meter reading (or your smart meter has), your bill is up to date, and your direct debit is the right level, now is the perfect time to see if you've too much energy credit. More than a month's worth right now is certainly a lot, so ask for it back."

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He acknowledged that getting a refund could be "tricky to do" as companies often have various reasons for holding onto customer payments. However, he assured that checking balances now can "defeat the timing excuse - making it all a lot easier."

Last month, Martin urged his followers to review their household bills including council tax, mobile phone tariffs, and water bills after they increased by at least five per cent in line with the new tax year. However, there's a silver lining for energy customers as prices dropped by approximately 12 per cent in most areas when the new price cap was implemented. This makes the potential rebate a welcome bonus on top of the newly reduced tariffs.

In another piece of advice, Martin shared his thoughts on whether people should consider fixing their energy bills before the next price cap announcement. On the latest episode of his podcast, Martin suggested that previous forecasts of a 3 per cent decrease in the price cap over the next year "is probably generous" and it's likely to be lower. He attributed this to the rise in wholesale rates due to the ongoing conflict in the Middle East and the persistent situation in Ukraine.

Martin stated: "If you can fix at anything where the discount is more than 3 per cent cheaper than the current rates, then you're both getting the peace of mind that you can lock in at a cheaper rate and you might actually, if those predictions come true, actually save money over the next year at the same time.

"Now what I've generally been saying when we've talked about fixes in the past, is they've been roughly the same price as what the predicted price cap fall is so it's been about peace of mind that you won't pay any more. Now, it looks like they are actually cheaper than the prediction to the price cap...not that much cheaper but still cheaper so you can get peace of mind if the predictions are right, and it is a very big if, then you might actually save money over the next year too."