As of the beginning of April, energy suppliers had roughly £7 billion in customer cash following a mild winter and cautious consumer usage meant they consumed less gas and electricity than expected.
According to research produced by comparison site Uswitch.com, over 16 million homes are allegedly due £6.7 billion in aggregate credit to their suppliers, £5 billion higher than this time last year.
Uswitch reported, based on a study of 2,000 homes, that the number of households in credit has increased by five million, from 11 million in April 2022, and that half of them have balances of more than £200.
Richard Neudegg, director of regulation at Uswitch, said: “This high level of any credit suggests that energy-saving awareness campaigns and cost-of-living support have played a part in protecting consumers from what could have been an even more difficult winter.
“It could also raise the question of whether direct debits set by suppliers in reaction to the energy price hikes have been much higher than they needed to be.”
Uswitch also cited government-funded £400 energy bill rebates as a factor in suppliers holding more cash than usual.
Monthly payments are determined by energy suppliers based on annual bills that are generated based on wholesale price estimates and consumer usage history.
Uswitch’s research also shed light on debt, finding a decrease in the number of consumers in debt from six million to four million, and a decrease in total debt due from £1.2 billion to £920 million.
However, the average amount owing by indebted households is estimated to have increased from £188 to £234.
According to Uswitch’s analysis, Plymouth had the highest average credit balance, at £603, while Norwich had the highest average debt, at £348.