Quantcast
Menu
Save, make, understand money

Household Bills

EDF Energy to automatically refund credit to direct debit customers

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
14/02/2014

EDF Energy has announced it will give direct debit customers a full annual refund of any credit built up on their energy account.

It is the first Big Six supplier to make this move and comes after allegations of suppliers sitting on customers’ credits for their own benefit.

The company will also review customers’ direct debit payments every six months, if they provide a meter reading, to ensure monthly payments are set at the right level and to help avoid a large build-up of credit or debt on the account.

Nearly two thirds of EDF Energy’s customers currently pay by monthly direct debit – a higher proportion than the industry average of 55%.

Vincent de Rivaz, chief executive of EDF Energy, said: “We are looking at a number of ways to bear down on rising costs for customers and are working closely with policy-makers to find ways to keep bills as low as possible. Today’s announcement shows again that we are listening to customers and taking action on their behalf.

“Direct debit helps spread the cost of energy through the year. Now this move means customers in credit will get their money back without asking. It’s the right thing to do and will give our customers the peace of mind of knowing they are not paying more than they need to.”

Currently, EDF Energy automatically repays direct debit customers with credit of £75 or more at their annual statement. Customers can still request any money owed below this level, but if they did nothing the credit would be added to their next bill.

Tom Lyon, energy expert at uSwitch.com, welcomed the move.

“The issue of energy suppliers benefitting from credits on customer accounts and failing to respond to requests to refund them was turning into a bone of contention,” he said.

“This step will reassure customers about making the move to paying by direct debit, safe in the knowledge that they will get a ‘no quibbles’ refund if their account goes into the black. We would now urge other suppliers to follow suit.”

 


Share: