The finance guru says May is the 'perfect time' for energy customers paying by direct debit to make check and claim back money
Personal finance guru Martin Lewis has issued a crucial reminder to customers of major UK energy providers including Octopus Energy , OVO Energy, British Gas , EDF Energy, and ScottishPower.
The ITV and BBC expert emphasised that approximately 60 per cent of customers who settle their bills via direct debit should carry out an essential check, describing now as the 'perfect time'. It's thought that roughly 16 million households across the country have accumulated credit on their energy accounts in 2026 thus far , which generally suggests they're paying through direct debit.
Mr Lewis explained that this period of the year presents the ideal opportunity to verify whether there are funds available for withdrawal - attempting this at an inappropriate time could result in needing to boost payments to account for periods of higher energy consumption. May is the optimal month for this task, he explained: "If you pay your energy bills by monthly direct debit, this is the perfect time to check whether you are in too much credit.
Energy firms are sitting on over £3 billion of our cash and you can get it back.
"So why right now? Well, at the beginning of the May, we are at the bottom of the curve in the energy direct debit cycle. That means this is the point of the year when you should have the minimum amount of credit. So go and have a look what credit you're in.
" There's one crucial step that householders must complete initially: "Make sure you've done an up-to-date meter reading or you've got a smart meter doing that for you and that's been factored in. Then assuming your direct debit is about right, what I would suggest if you have any more than a month and a half's worth of direct debits, that's too much.
" For those with approximately 6 weeks' worth of payments sitting in their account, the moment has arrived to reclaim it: "So suppose your direct debit is £200 a month. If you got £600, a month and a half worth is £300 quid. So I would be getting in touch with them saying, 'Why am I so much in credit? Please can you give me back the £300 of my money that you're sitting on?
'. " Video Loading Video Unavailable Click to play Tap to play The video will auto-play soon8Cancel Play now Mr Lewis has recently urged consumers on 'price cap' tariffs to secure a fixed-rate deal. The energy price cap, determined by Ofgem quarterly , establishes the maximum unit rates and standing charges that suppliers can levy for default, standard variable tariffs across England, Scotland, and Wales. It doesn't represent a total ceiling on bills; consumption determines costs.
The cap is applicable to households on default tariffs. Mr Lewis, appearing on ITV's This Morning, explained that individuals uncertain about whether they're subject to the price cap are almost certainly not on a fixed energy deal - and need to act. He remarked: "I was shocked that so few people knew they were on the price cap because we use this term all of the time.
And I often say, if you're on the price cap, get off the pants price cap. It's a pants cap. But I actually don't think people know.
"So, let's be very plain. The price cap applies to firms standard variable tariff. That's the default tariff. That's the 'you've not chosen a tariff' tariff.
That's the I've not done anything when my fix ended tariff. It's the do nothing tariff. That's the price cap. If you've chosen to fix, if you've chosen a specialist tariff and you're still within that, you're not on the price cap.
So, we are talking all those of you.
" Martin clarified that prices dropped 6.7% on April 1, with the price cap being reviewed quarterly. He stated: "What it does is it caps the unit rate and standing charge that energy firms can charge. Now, here's the thing you need to understand. The price cap is set based on a time lag.
So, the April price cap was based on wholesale rates. That's the worldwide rates if you like between middle of November and the middle of February.
"The July price cap is based from the middle of February till the middle of May. It contains all of the Middle East conflict, and prices were two thirds of the way through it have been very high. So that means the current prediction is we're likely to see a rise on the 1st of July of between 12 and 14% in the energy price gap.
" Mr Lewis explained that the cap is only valid for a three-month period, with the next revision due in October. He added that current forecasts suggest the October price cap will remain broadly similar, stating 'as once it's gone up 12% it's going to stay around there but we don't know. That's crystal ball gazing.
' He went on to say: "So that's the position that we are currently in. But the rate that you can get switchable tariffs on the market like cheap fixes that isn't based on a time lag. That's based on current prices right here, right now. So sometimes the time lag is good for you.
Sometimes the time lag's bad. Now since we had the ceasefire, worldwide natural gas prices that also dictate our electricity prices have dropped.
"They're not cheap, but they've dropped. So two weeks ago, you could not get a fix that was cheaper than the current price cap. It was about 7% more expensive. Right now, the cheapest fix is 6% less than the current price cap.
And with a fix, you lock in your rate. So, you can get a fix now at 6% less than the April price cap. And we're pretty sure that that price cap is going up in July. So, and this fixes don't move.
And then it might come down afterwards. We're not sure. But even if it does, probably won't get up. "
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