Households Could Get £65 Payout from Energy Suppliers Under Watchdog’s Proposals

HOUSEHOLDS could get £65 payout from energy suppliers under Watchdog’s new proposals.

In a bid to prevent customers overpaying on their bills watchdogs have proposed new plans which could see households being owed a payout of around £65 from energy suppliers.

Ofgem, the energy regulator hopes that providers will give refunds to direct debit customers who often overpay throughout the year. If the plans go ahead British homes could get on average a payout of £65.

According to Ofgem around 75 per cent of Brits use direct debits as their payment method for their energy. Richard Neudegg, Uswitch head of regulation hopes that the new proposals would see overpayments and hoarding of money stopped.

He explained that, “If a customer’s monthly bill is higher than it should be or the consumption is much less than expected, their supplier could be potentially hoarding hundreds of pounds of their money.”

Speaking of the new proposed rules Ofgem chief executive Jonathan Brearley said that the rules would make payments fairer and said, “This is an important step in making the retail energy market fairer for consumers at a time when many are facing financial hardship.”

The new proposals have come about because Ofgem is “concerned” that some energy suppliers are using the additional cash from customers to carry out “unsustainable business practices.” With the new proposal customers would receive money automatically refunded after a year with their supplier.

The new rules though are still in consultation and a decision will be made by the end of the year.

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