And last year, resolution service the Energy Ombudsman received more than 1,000 complaints relating to energy refund requests alone.
Consumers have become so frustrated they have taken to social media to name and shame the firms responsible.
One social media group directed at supplier Utility Point has more than 300 members.
The page - called Utility Point Owes Me A Refund! - encourages posters to share information and advice on how to get their money back.
But Utility Point is not an isolated case and readers signed up to a range of suppliers - both small and large - have complained that energy providers are holding on tight to credit balances.
UK households could be owed £65 payout from energy suppliers
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However, many customers who pay by fixed direct debit are overpaying resulting in surplus credit balances.
Ofgem s research found that as much as £1.4billion was held in surplus credit balances in October 2018.
It is concerned that some suppliers may use customers surplus credit balances to fund otherwise unsustainable business practices.
The auto-refund policy would require suppliers to refund any credit balances, for domestic credit customers paying by fixed direct debit, above £0 each year on the anniversary of when they started their contract.
Ofgem found that as much as £1.4billion was held in surplus credit balances in October 2018
Jonathan Brearley, chief executive of Ofgem, said: These new proposals would ensure that suppliers are not holding onto more of customers money than absolutely necessary, potentially returning millions of pounds of customers money.
BBC News
By Kevin Peachey
Published
Customers who pay too much to their energy supplier through their monthly direct debit payment should receive automatic annual refunds, Ofgem says.
For years, customers have complained that energy firms can hoard thousands of pounds of overpayments and would only return it on request.
Now the regulator has proposed balances are cleared once a year, claiming suppliers held a surplus of £1.4bn.
It said some were using the money for unsustainable business practices .
Energy UK, which represents suppliers, said direct debits evened out bills even though domestic gas and electricity use varied considerably during the year.
General view of EON energy bills.
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Energy suppliers could have to return an average of £65 to households under proposals to limit the amount of customer credit they can hold.
Ofgem is consulting on plans to ensure firms do not hold on to any more of their customers’ money than is absolutely necessary after finding that as much as £1.4 billion was held in surplus credit balances in October 2018.
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