Around £240 million of energy credit is languishing in closed account balances and could be reclaimed by consumers, according to the UK’s energy watchdog. Ofgem and trade association Energy UK are urging people who may be due a refund to contact their previous supplier.
Statistics reveal that 1.9 million closed accounts hold credit, averaging approximately £126 per account. Consumers who have relocated within the past five years might have leftover funds in their accounts, but these could not be refunded due to outdated contact information.
More than 90% of closed account balances are automatically returned and suppliers will always endeavour to refund any outstanding credit, says Energy UK. Customers are being urged to scrutinise letters and emails for final bills and get in touch with their supplier or log into old accounts if they suspect they’re owed money.
Tim Jarvis, Ofgem’s director general for retail, said: “Moving house requires a lot of life admin and it’s understandable that some things will be missed. But with almost two million closed accounts currently in credit, the message is clear – if you’ve moved in the last five years, reach out to your old supplier, provide them with the correct information, and you could be due a refund.”
‘Keep details up to date’
Ed Rees, Energy UK’s head of retail policy, said: “It’s always important to keep your contact details up to date so your supplier can provide support when you need it and so they can also then return unclaimed funds promptly. If you’re moving, switching or closing an account, remember to keep your direct debit active until your final bill has been settled to avoid leaving money unclaimed.”
According to Ofgem’s regulations, suppliers must issue a final bill within six weeks of an account closure and process refunds within 10 working days. Hold-ups occur when customer information is absent and a refund cannot be processed.
