Business energy credit balance: how to claim a refund

If your business energy account is in credit, ask your supplier for a refund, quoting your account number and a recent meter reading. If you have already left, contact the old supplier with your old account details. Ofgem's refund guidance says suppliers should hand back credit when asked unless they have reasonable grounds to keep it, but that page is written mainly for households and does not confirm that every household rule applies to business accounts.

How credit builds up

Ofgem lists several routes:

• Spreading annual costs evenly through the year, so you pay more than you use in quieter months.
• Overestimated bills because readings are infrequent (see estimated bills).
• A fixed direct debit set higher than your usage.
• Billing and payment timing not lining up.
• Upfront payments, or a prepayment balance.

For a business with seasonal trade, such as a seaside café or a school-term-time unit, credit can swell in the quiet months and vanish in the busy ones. Do not assume surplus is permanent.

Worked example

You pay £600 a month by direct debit but your actual electricity cost is £480 a month for eight months.

• Monthly surplus: £600 - £480 = £120
• After eight months: £120 x 8 = £960 credit

If winter bills then run at £750 a month, that credit would be used up quickly: £750 - £600 = £150 shortfall each month, so £960 lasts about six months. Ofgem suggests thinking about whether you would struggle to pay without the credit and whether costs may rise soon before you claim it all back. A better fix is often to ask for the direct debit to be reduced.

Claiming credit on a live account

1. Take and submit a fresh meter reading, so the balance is based on actual use.
2. Contact your supplier using details on the bill or in your online account. Ask for the credit balance and for it to be refunded to your bank account.
3. Ask them to review your direct debit.
4. If you are unhappy with the response, complain.

Suppliers usually review accounts yearly with actual readings and may then refund credit automatically.

Claiming credit after switching or moving

When you leave a supplier, there should be a final bill and any credit should come back to you. Ofgem's household guidance says a supplier should refund remaining credit after a switch without being asked, with six weeks to send a final bill and 10 working days from the final bill to refund. But it also says the switching compensation under the guaranteed standards does not apply to business customers, so do not count on fixed deadlines or automatic compensation for a business account. Instead:

1. Find your last bill, account number and the address.
2. Contact the previous supplier and ask for the final bill and any refund.
3. Chase in writing after a couple of weeks.

When moving premises, check whether your account is in credit or debt before you leave; Ofgem makes this point for business customers. See closing a business energy account and telling your supplier when you move.

If a supplier has gone bust

Credit on a failed supplier's account is a separate problem; Ofgem says compensation is not available if the supplier has gone bust. Read what happens if your supplier goes bust.

Security deposits

A deposit is not the same as credit. See are security deposits refundable.

What to do if the supplier refuses or delays

1. Complain in writing, quoting the balance shown on your bill and the dates you asked.
2. Ask for the reason in writing; they must have reasonable grounds to withhold.
3. After 8 weeks or a deadlock letter, escalate to the Energy Ombudsman within 12 months. Micro and small businesses are eligible.

See energy disputes and the Ombudsman.

Is the credit really yours?

Check that the credit is not simply a payment waiting to be matched against an invoice for a later period, or that the bill has not been calculated on an estimate. An estimated bill can show false credit that disappears when a true reading arrives. Compare it with your latest actual reading.

Pitfalls to avoid

• Claiming credit from an estimated bill. The balance may reverse once a real reading arrives.
• Taking it all out in autumn. Winter heating can raise bills quickly.
• Forgetting VAT. A refund of an overpayment relates to the original charge, so check how it will be shown and what your accountant needs.
• Assuming closed accounts chase themselves. Always check that your bank details are held and your forwarding address is current.

Keep a simple credit log

Each quarter, note the balance on your account, the latest actual reading and the direct debit. If the balance has risen for three quarters running, you are probably overpaying and can ask for the payment to be lowered.

What to include in your request

Write to the supplier with the account number, supply address, the credit shown on your latest bill and the date of your most recent actual reading. State clearly that you want the credit refunded to your bank account, and give the account details securely through the supplier's usual channel rather than in an open email. Ask for the refund within a stated period, such as 14 days, and for confirmation of the amount and the date it will be paid. If the supplier says it must keep part of the credit to cover expected winter bills, ask it to show the calculation. Reasonable grounds are acceptable; a vague refusal is not, and it is worth escalating through the complaints route.

Finally, remember that a refund request does not change your contract. Your rates, term and exit terms stay the same. If a supplier suggests that taking the credit out will affect your deal, ask it to show where the contract says so.

Several sites or fuels

If you have more than one meter or premises, each account usually has its own balance. Ask for the credit on each one separately, and check that a credit on one site has not been used to clear a debt on another without your agreement.

Next steps

• Read the meter, submit it and ask for the exact balance.
• Request a refund or a lower direct debit.
• Check your bill structure with our bill guide.