National Energy Action (NEA), a charity that tackles fuel poverty, has praised energy supplier Scottish Power for choosing to compensate direct debit customers, reports the Guardian.
Many homeowners paying their energy bills by direct debit have complained they are in significant credit to their suppliers.
Scottish Power has sought to address the issue by pledging to pay back £1 for every £33 of credit for customers who have more than £100 on their account.
The NEA praised the company's scheme, which will come into action in June, and voiced its hope that more customers will choose to pay their bills by direct debit as a result.
Maria Wardrobe, from the NEA, told the paper: "The announcement suggests the energy companies are thinking of innovative ways to ensure their customers are getting best value at a time when the cost of gas and electricity remains high."
Ms Wardrobe added that direct debit is still the cheapest way for homeowners to pay their energy bills.
All the UK's major energy companies have announced slight price reductions in recent weeks.
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