UK gas companies stockpile customers' cash - survey

Gas firms have stockpiled hundreds of millions of pounds of customers' money, according to a survey.

Suppliers have built up a £490 million cash float, as consumers' direct debit payments have failed to drop in line with gas prices, says price comparison service moneysupermarket.com.

However, British Gas - Britain's largest domestic energy supplier - rejected the findings as "spurious".

The moneysupermarket poll of 2,407 British adults, carried out by YouGov, found that almost nine million households are in credit to the tune of an average £56.

One in eight of those in credit have overpaid their gas supplier by more than £100.

Some 61 per cent of users currently pay their gas bill by monthly direct debit.

These have risen steeply along with higher domestic gas prices throughout last year, but have yet to fall in the wake of subsequent price drops, said moneysupermarket.

The survey showed that Powergen's customers had the highest amount of cash held on float at an average £78 and the largest proportion of customers in credit by over £100 - 26 per cent, compared to a national average of 12 per cent.

Customers of npower and Scottish Power had also overpaid more than the country-wide average - at £67 and £58 respectively.

British Gas and Scottish & Southern Energy had stockpiled customers' cash to an average £55, it said, while London Energy/ EDF were sitting on a typical £46 per customer.

Paul Schofield, head of utilities at moneysupermarket, said most suppliers reassess the level of customers' direct debit payments every six months, but urged consumers to prevent companies building up larger reservoirs of unspent money by asking for an immediate review.