Last updated: Monday 5 October 2026 (Europe/London).
Next update: when Ofgem announces the January–March 2027 price cap in late November 2026, or if the rules on final bills and credit refunds change.
By: Switch Editorial Team, Switch Squid Ltd
As of 5 October 2026, if you switch or close a home energy account with money in credit, your old supplier should send a final bill within six weeks and then refund the credit within 10 working days of that bill — and if either deadline slips, you are due £40 automatic compensation for each miss. With Ofgem’s October–December 2026 typical dual-fuel Direct Debit bill at £1,723 a year, a summer of overpaying can leave a meaningful balance, so it is worth claiming it back cleanly before you move to a cheaper tariff. We may earn a commission if you switch through our links.
Sources: Ofgem — price cap 1 October to 31 December 2026, Citizens Advice — check if a previous energy supplier owes you money, Standards of Performance Regulations 2015, regulation 6D (credit balances) and Ofgem decision raising guaranteed-standard payments to £40 from 2 January 2025.
Compare home energy tariffs before you switch (MoneySuperMarket)
- Benchmark: Ofgem’s October–December 2026 typical dual-fuel Direct Debit bill is £1,723 a year
- Quotes are personalised to your postcode, meter type and annual kWh
- Main limitation: your credit stays with the old supplier until the final bill — the new tariff does not inherit it
Why so many households are in credit this October
Most people pay for energy by a fixed monthly Direct Debit. Suppliers set that payment from your expected yearly use and spread it evenly, so you tend to overpay through the warmer months and draw the balance down over winter. Ofgem describes this pattern plainly: credit typically builds over summer and then helps cover higher winter bills. That is normal and not a sign anything has gone wrong.
It becomes a question the moment you decide to leave. If you switch supplier in October, you leave right at the point where your summer credit is likely to be at or near its peak. The cap rose from the July–September level to £1,723 for October–December 2026, so many households are now comparing tariffs — and many of them will have a balance sitting with the supplier they are about to leave. Knowing how that money comes back saves a lot of chasing later.
One honest caveat before you claim: credit is not always “spare”. If you are staying with your supplier through winter, that balance may be exactly what stops your January bill from jumping. Ofgem suggests thinking about whether you could manage the next bills without it before asking for it back. The rules below are mainly about what happens when you leave.
What happens to your credit when you switch or close an account
Your credit does not move across to your new supplier. It stays on your old account until the old supplier works out your final position, then they pay back whatever is left. The process runs in three stages.
1. The switch or closure date. Your new supplier tells you the date your supply moves across. If you are moving out of a property instead, your account closes on the date you give your supplier. Either way, this is the date your final meter reading needs to match.
2. The final bill. Your old supplier uses the closing reading to calculate what you used up to the switch date, takes off everything you paid, and shows the result on the final bill. Citizens Advice says you should get this within six weeks. If it takes longer, you automatically get £40 compensation from the supplier.
3. The refund. If the final bill shows you are in credit, regulation 6D of the Standards of Performance Regulations says the supplier must refund it within 10 working days of issuing the final bill (or a corrected final bill). If they pay by cheque, the cheque has to be posted in time to reach you within those 10 working days. If they miss it, you are owed another £40.
Credit refund rules and timings (checked 5 October 2026)
| Stage | Rule | If it is late | Source |
|---|---|---|---|
| Final bill after a switch | Within 6 weeks | £40 automatic compensation | Citizens Advice |
| Credit refund after the final bill | Within 10 working days of the final (or corrected final) bill | £40 automatic compensation | Regulation 6D; Citizens Advice |
| Paying the compensation itself | Within 10 working days | A further £40 | Citizens Advice; Ofgem £40 decision |
| Old, closed accounts | Credit must be refunded however long ago the account closed | Complain, then go to the Energy Ombudsman | Citizens Advice |
| Prepayment meters | Onward credit for your new supplier can count as the refund | Same 10-working-day standard applies | Ofgem switching standards guidance (2019) |
| Asking for credit while staying | You can ask your supplier to refund credit at any time | Raise a complaint if it is refused without a fair reason | Ofgem |
| Price cap benchmark | £1,723/yr typical dual fuel, Direct Debit, 1 Oct–31 Dec 2026 | — | Ofgem |
Two details trip people up. First, “working days” excludes weekends and bank holidays, so 10 working days is usually two calendar weeks. Second, the 10-day refund clock starts from the final bill, not the switch date. If the final bill arrives five weeks after you leave, the refund can be due nearly seven weeks after the switch and still be on time.
The October–December cap also sets the default rates many people will compare against: Ofgem’s national average Direct Debit figures are 26.32p per kWh and 54.83p a day for electricity, and 7.97p per kWh and 29.68p a day for gas. Your region and meter type change the exact numbers, which is why a personalised quote matters more than the headline £1,723.
Compare tariffs against the £1,723 cap benchmark
- Total yearly cost for your real usage, side by side with the default capped rates
- Check the standing charge and unit rate on each tariff, not just the monthly figure
- Your old supplier still owes your credit — switching does not put it at risk
How to get the final meter reading right
An accurate closing reading is the single most useful thing you can do. If the final bill is based on an estimate, your credit figure is only a guess, and a later correction can push a refund back by weeks.
- Take a dated photo on the switch day. Photograph each meter display clearly, including the meter serial number if you can. A photo on your phone carries a timestamp, which helps if anyone questions the figure later.
- Send it to both suppliers. Your new supplier usually asks for an opening reading around the switch date, and that same figure becomes your old supplier’s closing reading.
- Smart meters still need checking. A working smart meter should send readings automatically, but some lose their smart connection after a switch. Take a photo anyway.
- Two-rate meters need both registers. Economy 7 and similar meters show separate day and night figures. Record both.
- Moving out? Read the meter on the day you hand back the keys and give your supplier a forwarding address for the final bill and refund.
If you want a fuller walkthrough of reading-led billing, our guide to bill estimate accuracy under the October 2026 cap covers how estimates are built and corrected.
What to do if your refund is late
Most refunds arrive without any fuss. If yours does not, work through these steps calmly and keep a record as you go.
Step 1: Check the dates. Find your switch or closure date and the date on the final bill. If no final bill has arrived after six weeks, ask for it. If the bill is more than 10 working days old and the credit has not landed, the refund is late.
Step 2: Contact the old supplier. Ask for the refund to be paid and for the £40 compensation for each missed standard. Compensation is meant to be automatic, but asking does no harm. Confirm the bank details or address they hold for you.
Step 3: Make a formal complaint if needed. Use the supplier’s complaints process and keep the reference number. Note any calls with the date and the name of the person you spoke to.
Step 4: Go to the Energy Ombudsman. If the supplier has not resolved your complaint after eight weeks, or sends a letter saying it cannot do more (often called a deadlock letter), you can take it to the free Energy Ombudsman.
Step 5: Get free advice. The Citizens Advice consumer helpline is 0808 223 1133, and Citizens Advice also explains how to find credit on accounts closed years ago — the money is still yours however long ago you left.
Common situations and how they play out
You switch while still paying off a fixed tariff. Any exit fee from the old fixed deal usually appears on the final bill and is taken off your credit before the refund. Check the fee before you switch; our guide to energy exit fees in October 2026 explains when fees tend to be waived near the end of a fix.
You owe a little money rather than being in credit. If the final bill shows a balance due, you pay it to the old supplier as normal. Ofgem says you can usually still switch if any debt is under 28 days old, with the amount added to your final bill.
You have a prepayment meter. Some suppliers return leftover credit as onward credit for your new supplier rather than as cash. Ofgem treats that as a valid refund under the same 10-working-day standard, according to its guidance on switching standards.
The final bill looks wrong. Query it straight away with your dated meter photos. A corrected final bill restarts the 10-working-day clock for the refund, so a quick challenge is better than waiting.
You are moving home. The same final bill and refund rules apply. For the move itself, see our guide to switching energy when you move house.
Should you switch now or stay put?
Getting your credit back and choosing a new tariff are separate decisions. Your credit is protected by the refund standard whether you switch this week or in the spring, so it should not hold you back. The real question is whether a tariff beats staying on the capped default rates for your usage.
Switching tends to make sense when a fixed or tracker tariff shows a lower yearly cost than your current tariff once standing charges and any exit fee are included. Staying can be the better call if your current fixed deal is already cheaper than the market, or if an exit fee would wipe out the saving. Ofgem itself notes that the best option may be with your current supplier, so it is worth including them in the comparison.
Fit summary
Good for: households switching or closing a home energy account this autumn who have built up summer credit and want it back on time.
Consider alternatives: if you are staying with your supplier through winter, keeping some credit can smooth January and February bills.
Not for: business premises. Business energy has different rules, and SwitchSquid covers it separately in its business energy guides.
Important conditions
- £1,723 is Ofgem’s typical-use figure for dual fuel on Direct Debit, not a personal bill.
- Refund timings run from the final bill, and a corrected final bill restarts the clock.
- The credit-refund standard covers a switch under a valid contract; a mistaken switch is handled under separate rules.
- Exit fees and any money owed are taken off your credit before it is refunded.
- Comparison prices change daily, so re-check the quote on the day you switch.
- We may earn a commission if you switch through our MoneySuperMarket links.
Final decision card
Switching this month → take dated meter photos on the switch day, expect the final bill within six weeks and the refund within 10 working days of it.
Refund overdue → contact the old supplier, ask for the refund plus £40 for each missed standard, and complain formally if needed.
Still deciding → compare your yearly cost against the £1,723 cap benchmark; your credit is safe either way.
Ready to switch? Check today’s tariffs for your postcode
- Enter your real annual kWh from your latest bill for the most accurate quote
- Take your closing meter photo on the switch date so the final bill is exact
- Your credit refund from the old supplier follows the final bill
FAQ
How long does an energy supplier have to refund my credit after I switch?
Your old supplier should send your final bill within six weeks of the switch. It must then refund any credit within 10 working days of issuing that final bill. If either deadline is missed, you are due £40 automatic compensation for each one.
Does my credit move to my new energy supplier?
No. Credit stays with your old supplier until it issues the final bill, and then it is refunded to you, usually to your bank account or by cheque. Your new account starts from zero.
What compensation do I get if my energy refund is late?
Guaranteed standard payments rose from £30 to £40 for breaches from 2 January 2025. If the supplier also fails to pay that compensation within 10 working days, it owes you a further £40.
Can I get credit back from an energy account I closed years ago?
Yes. Citizens Advice says suppliers must refund money left on a closed account no matter how long ago it closed. Contact the old supplier with your address history and any account numbers you have.
Can I ask for my credit back without switching?
Yes. Ofgem says you can contact your supplier to claim credit back at any time. Think about whether you will need that balance to cover higher winter bills before you ask for all of it.
What if my final bill uses an estimated reading?
Send your dated meter photo and ask for a corrected final bill. The refund deadline then runs for 10 working days from the corrected bill, so challenge it quickly.
Where can I complain if my old supplier will not refund me?
Complain to the supplier first and keep the reference. If it is not resolved after eight weeks, or you receive a deadlock letter, you can take the complaint to the Energy Ombudsman for free.
