Ofgem has released data showing energy suppliers held billions in customer credit balances in 2023.
Households paying via fixed direct debit had an average credit balance of £3.7 billion, peaking at £5 billion in the third quarter.
Previously, Ofgem had cited a figure of £8.1 billion for Gross Customer Credit Balances, which included various balances and policy measures.
According to Ofgem’s report, the average household credit balance for the year was £252, with winter 2023 ending at £178.
The energy regulator stressed that these figures represent households in credit, updated quarterly.
Suppliers’ Customer Credit Balances (CCBs) play a significant role in the retail energy sector.
According to Ofgem, suppliers are required to accurately determine fixed direct debit amounts based on current information to prevent the accumulation of excessive credit balances and facilitate effective bill management for customers.
Customers are entitled to clear bill explanations and the ability to adjust payments as necessary, with regulations being strengthened in response to past issues.
In the event of supplier insolvency, measures are in place to protect customer credit balances, although the costs are distributed among consumers.