![]() Greg Jackson, the boss of Britain’s fourth-largest supplier Octopus Energy, defended not paying interest on deposits to customers by pointing out that his company does not charge it on households’ outstanding debts either. The average easy access savings account currently pays 2.36pc, according to the financial data company Moneyfacts. If this money was still in customers’ hands, then it could be deposited in a savings account that pays interest. However, energy prices have fallen sharply over the last few months – meaning that many customers now have a bigger balance with their provider than will be needed for the future. ![]() I’d like to see rules compelling energy providers to pass on credit interest to customers.”Įnergy companies typically split the cost of a customer’s annual energy bill into 12 equal chunks over the course of a year, allowing them to build up a cash buffer during the warm summer months that covers their far greater use of gas during winter. “Much better to earn interest on the cash in a savings account or, even better, use it to pay down debts. Justin Modray, of consumer advice business Candid Money, said: “Holding an oversized credit balance with your energy provider makes them money, not you. Households are at risk of missing out on more than £150m in interest payments as energy suppliers hoard their money to cover future bills.Īn estimated £6.7bn of households’ money was held in energy customer accounts at the end of last winter, according to comparison website Uswitch – enough to generate £158m a year in interest if placed in an average savings fund.
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