Does an electricity refund have to be handed over to my IVA ?

[Michael1971]

I am due a refund from my electricity provider. If that is paid into my bank account does it all have to be handed over to my IVA ?

[luluj]

I would imagine not unless it is a significant amount. If you are unsure check it with your IP, but your allowances are clearly set for the monthly amount that you have been paid therefore the money being returned is simply a saving from that....I would hesitate from offering to change your allowance on this as we all know that utility companies have a habit of increasing their charges at very short notice.

[Michael1971]

Hi luluj . Thanks very much for your reply. I am unsure of the amount of refund yet as I am apparently £240 in credit but have my quarterly bill for Nov, Dec and Jan to come off that which I am hoping won't be more than £150 but won't get the bill for a couple of weeks. I was hoping to put any refund away for emergencies if I am allowed. Thanks for the advice. I am only 5 months in to my IVA so all this is still new to me and rather scary. I am terrified of doing something wrong.

[luluj]

If you are only talking £90 approx then I really would just put this into your contingency fund - you can easily receive an increase demand in next quarters statement and if like my utility company any refunds are normally in £50 chunks and therefore you may only see a little anyway.

[Michael1971]

Thank you.

[MelanieGiles]

Check the terms of your IVA, but may only have to hand over windfalls which are in excess of £500.

[abbiesmum2003]

Have you requested refund? Our provider has never volunteered to refund any credit. I believe a lot of people decelop a credit on the account during summer months but leave it with the company to provide a buffer for increased use during winter.

[TheArtist]

If any refund is in any jeopardy of being captured by your IP, I would just ask your energy supplier to keep your account in credit by this amount. You will always use the energy, sooner or later. Plus, should you get short, when the bill is due, you could always use that 'credit' as a buffer.

If however, you want the credit back, I am sure you are allowed to keep any sum under £500.00.

[Michael1971]

Thanks everyone for your advice. My electricity is with e-on and at this time of year if my account is in credit by £5 or more they give me the option of reducing my payments or having the money refunded. I will check the terms of my IVA but think unless it is totally clear I will ask them to keep my account in credit as advised. cheers

[Shining]

A wise thing to do Michael1971, check the terms of the IVA as suggested by Melanie.

Hope you get to retain it though as it will be a nice start/addition to a contingency