Gas suppliers build up £174 million cash float

UK gas suppliers have built up a £174 million cash float while customers are feeling the pinch, according to research from moneysupermarket.com.

According to the UK's leading price comparison site, five million households are in credit to their gas supplier - with each bill payer owed on average £89; that leaves UK consumers £454 million out of pocket. Worse still, a shocking 80 per cent of those owed money by their suppliers have not asked for their cash back, leaving a whopping £363 million currently unclaimed.

However, the research also reveals 1.8 million bill payers are in debt to their gas supplier, owing on average £151 per household, meaning they collectively owe £280 million. Despite this, gas suppliers are still sitting on a staggering £174 million overall, a figure which could equate to an additional £5.3 million in interest that customers are missing out on.

Scott Byrom, utilities manager at moneysupermarket.com said: "In 2008 we saw gas giants holding £225 million of their customers' cash ‘on float' and while it is encouraging to see this has decreased by more than £50 million this year, there is still cause for concern. This year bill payers have welcomed price cuts on online energy tariffs across the board however it's unsurprising customers are still finding themselves in credit with their gas supplier as direct debit arrangements may not have been updated to reflect these price changes. Even more concerning is that four fifths of bill payers with ‘cash on float' have not asked for their money back - a clear oversight, especially when many of us are feeling the financial pinch."

Another issue for bill payers in debt is their inability to change supplier for a better deal while they still owe money to their provider. Over half of those in debt (53 per cent) do not plan to do anything about it, hoping the debt will even out over time, and a worrying 241,000 households (13 per cent) are not in a position to be able to pay the money they owe back, even if they wanted to, as they can't afford it. A further 14 per cent state they would find it hard to pay their debt off.

Scott Byrom continued: "The amount of people who have found themselves in debt to their supplier is concerning, as is the number of bill payers unable to pay this money back. We are facing a very competitive market at the moment, with prices changing constantly. Those in debt will not be able to change their supplier until the money is paid back, thereby limiting their chances of finding the best deal available to them.

"I recommend bill payers review their direct debit arrangements every six months to ensure they are paying the right amount for the energy they are using. If you are in credit then speak to your supplier to get that money back and adjust your monthly debit. Similarly, if you are in debt and unable to pay the money back, it is better to act now before it is too late. Speak to your supplier about the best way to pay it back, and if necessary, discuss the possibility of getting on to social tariffs or alternative options available to you."