Britons could recover about £1.4 billion ($1.9bn) from their energy payments under proposals from regulator Ofgem that would limit the amount of credit suppliers can hold. Typically, households pay fixed monthly direct debits for their energy supply, with credit built up over the summer months when consumption is lower and then run down in the winter when usage increases. "These new proposals would ensure that suppliers are not holding onto more of customers’ money than absolutely necessary, potentially returning millions of pounds of customers’ money," Jonathan Brearley, chief executive of Ofgem, said in a statement. An automatic refund policy would mean credit in customers' accounts would be returned, resetting the accounts to zero on the anniversary of when the contract started, Ofgem said. As much as £1.4bn was held in surplus credit balances in October 2018, according to Ofgem's latest data, which under the new proposals would equate to around £65 per household on average being returned. A consultation on the plan was announced on Wednesday and will run until May 12. If confirmed, the new measure would take effect from 2022.
