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-Tait
Senior Manager
Matt lead clients through key strategic projects exploring growth opportunities, business models, competitive advantage, and mergers & acquisitions.
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