Typical Direct Debit (DD) customers are ~1.7x monthly payments in credit as we head into winter. With c.70% domestic energy customers choosing to pay by DD, payment adequacy is critical for supplier health.
Analysis by Matt Turner and John de Bono shows:
- Customer credit balance across all suppliers was £3bn at the end of Q2-24 with around 73% of all DD customers in credit
- Lower bills means this is down £0.3bn compared to last year, and ~350k more households were in credit in Q2-24 compared to Q2-23
- Gross customer credit balance is forecast to be ~£4.8bn at the end of Q3-24, with 17m accounts in credit
Contact Matt Turner for more on the implications of our analysis.
Matt Turner
Senior Manager
Matt helps lead clients through key strategic projects exploring growth opportunities, business models, competitive advantage, and mergers & acquisitions.
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