Martin Lewis is urging customers of major energy suppliers including Octopus Energy, OVO Energy, British Gas, EDF Energy, and ScottishPower to review their accounts this May to check whether they are holding too much credit with their provider.
The consumer finance expert said May is the “perfect time” for households paying by monthly direct debit to assess their balances because energy account credit levels are typically at their lowest point of the year after winter usage has passed.
According to recent estimates, around 57% of UK households – roughly 16 million homes – currently hold credit balances on their energy accounts in 2026.
Credit
Energy suppliers often spread annual energy costs across equal monthly direct debit payments. During warmer months, customers usually build up credit because household energy usage falls while payments continue at the same rate.
Martin Lewis explained that this seasonal cycle makes May the best month to review balances.
He said suppliers are currently holding more than £3 billion in customer credit across the UK.
For many households, this may mean money can be reclaimed if account balances are significantly higher than necessary.
Rule
Lewis highlighted what he described as a “six-week rule” for direct debit customers.
He advised households to first submit an up-to-date meter reading, or ensure smart meter readings have been correctly processed before checking balances.
Once readings are updated, customers can estimate whether they are holding excessive credit.
| Monthly Direct Debit | Suggested Maximum Credit |
|---|---|
| £100 | Around £150 |
| £150 | Around £225 |
| £200 | Around £300 |
| £250 | Around £375 |
According to Lewis, households with more than roughly six weeks’ worth of payments sitting in credit may want to contact suppliers to request a refund.
For example, a customer paying £200 per month with a £600 credit balance may potentially reclaim around £300.
Refunds
Customers who believe they are overpaying can contact their energy supplier directly to ask for an explanation of the balance or request money back.
Before requesting a refund, experts recommend checking:
- Recent meter readings
- Smart meter accuracy
- Upcoming bill estimates
- Seasonal usage patterns
- Current direct debit amounts
Suppliers may sometimes retain larger balances if they expect increased usage later in the year, but customers still have the right to question unusually high credit levels.
Tariffs
Alongside the credit warning, Martin Lewis also urged households on standard variable tariffs to review fixed-rate energy deals.
The UK energy price cap, set quarterly by Ofgem, limits the maximum unit rates and standing charges suppliers can charge customers on default tariffs across England, Scotland, and Wales.
However, the cap does not limit total bills because costs still depend on household energy consumption.
Lewis explained that many consumers may not realise they are currently on default tariffs.
Cap
The current energy price cap fell by 6.7% on April 1, but forecasts suggest prices may increase again from July.
According to Lewis, the July price cap is expected to rise by approximately 12% to 14% due to earlier increases in wholesale energy prices.
| Energy Price Cap Period | Expected Movement |
|---|---|
| April 2026 | Down 6.7% |
| July 2026 | Forecast rise of 12% to 14% |
| October 2026 | Expected to remain broadly similar |
Lewis explained that Ofgem calculates the price cap using earlier wholesale market prices rather than current rates. This time lag can sometimes work in consumers’ favour, but not always.
Fixes
Recent changes in wholesale gas prices have improved the availability of fixed-rate energy deals.
Lewis noted that only a few weeks ago, fixed tariffs were more expensive than the current price cap. However, some fixed deals are now available below current capped rates.
He said some fixed tariffs are currently around 6% cheaper than the existing April price cap, potentially offering protection against expected increases later in the year.
Fixed tariffs allow households to lock in rates for a set period, which may help some customers manage future price volatility more predictably.
Timing
The broader message from Lewis is that timing matters when reviewing energy accounts and tariffs.
Checking balances in May allows customers to assess whether they are carrying unnecessary credit after winter demand has passed. At the same time, reviewing tariffs before potential July increases may help some households reduce future costs.
Energy prices remain sensitive to changes in global wholesale markets, particularly natural gas prices, which continue to influence electricity costs across the UK.
For households paying by direct debit, reviewing account balances, meter readings, and tariff options this month may help avoid overpayments and prepare for possible price changes later in 2026.
FAQs
Why is May important for energy customers?
Credit balances are usually lowest after winter.
What is Martin Lewis’ six-week rule?
Customers may reclaim excess energy credit.
How much credit is too much?
More than six weeks of direct debits.
Could energy prices rise in July?
Forecasts suggest a 12% to 14% increase.
