Four of the 'Big Six' energy companies will now automatically refund direct debits to customers who are in credit.

While EON were already doing this, negotiations chaired by Energy & Climate Change Minister Greg Barker have resulted in EDF, British Gas and SSE – as well as First Utility – following suit and passing consumers’ money back to them.

The automatic refund of direct debit provides customers with more control over their energy bills. At the mid-year point on an annual direct debit arrangement, the supplier will:

Mr Barker said: “This is important and welcome news for the 55% of energy customers who choose to pay by direct debit. The Coalition is committed to helping hardworking people reduce the cost of energy bills, and this will ensure that customers are rightly returned the cash that is theirs without having to ask.

“There is still more to do but this builds on the Coalition reforms to the energy market, and to have five major energy companies agreeing to this new approach will go a long way towards rebuilding consumer trust. I hope other energy companies will adopt this approach very soon.”