Energy firms should give back direct debit billions to clients, says minister The minister said some companies were deliberately sitting on overpaid cash. "With more hardworking people switching to direct debit to get the best deal on their energy bills, it is vital that they aren't being unknowingly ripped off," he said. The better energy companies will now automatically refund your cash if you build up more money than required to meet your normal bill or will pay you interest if you are in surplus. However, it looks like some companies aren't doing that and I am determined to get consumers a better deal. Mr Barker's challenge came as Owen Paterson, the Environment Secretary, warned that water companies must resist hiking their prices next spring or risk damaging their reputations. The industry enjoyed record profits during the economic downturn thanks to low interest rates on their debts, while families" bills rose faster than their wages, Mr Paterson has said. Suppliers must forego a scheduled above-inflation increase in prices in April and pass profits on to customers, Mr Paterson said in a letter to the chief executives of Britain's water companies. The move is the latest initiative by the Government to reduce the burden on hard-pressed families. Ofwat, the water regulator, sets the limits each water company can charge over a five-year period. The deal struck in 2009 will allow firms to increase their bills by up to 1.6 per cent above inflation from April next year. But Mr Paterson said firms had recently enjoyed unexpectedly low interest rates, leading to surprise profits. At the same time, the increase in water bills has "substantially outstripped household income." He wrote: "As providers of essential services, you will be acutely aware of the very real cost-of-living pressures experience by households across the country. It is essential that unexpectedly high profits for companies are translated into real and tangible benefits for customers through higher investment or lower bills. The next price review comes next year, covering bills from 2015 to 2020. Ofwat hopes to cut bills by £120 million to £750 million a year. Ed Miliband, the Labour leader, will renew his attack on the "cost of living crisis" in a speech at Battersea Power Station. He will say the average wholesale cost of energy has risen by 1.6 per cent since 2011, while bills have risen by 10.4 per cent. He will say David Cameron has formed an "unholy alliance" with energy firms.