Energy consumers urged to reclaim £240m in closed account balances

Energy consumers urged to reclaim £240m in closed account balances

Around £240 million of unclaimed credit balances in closed accounts are waiting to be returned to consumers, according to data from energy regulator Ofgem.

Consumers who have moved home in the last five years are being encouraged by Ofgem and Energy UK, the body which represents suppliers, to check letters and emails for final bills and contact their supplier if they think they could be due money.

The latest Ofgem figures show 1.9 million closed accounts still have credit in them. All customers have to do to check if they are owed money is to contact their suppliers or log into old accounts.

Suppliers always try and get any outstanding credit balances back to consumers when they close an account, but if the person moves on and doesn’t update them with onward contact details, it becomes almost impossible.

More than 90% of closed account balances are returned automatically according to Energy UK, and suppliers want to ensure all consumers get what they are owed.

Tim Jarvis, director general for retail at Ofgem, said: “Moving house requires a lot of life admin – and it’s understandable that some things will be missed. But with almost 2 million closed accounts currently in credit, the message is clear – if you’ve moved in the last 5 years, reach out to your old supplier, provide them with the correct information, and you could be due a refund.

“Suppliers work very hard to return money to people when they close an account – due to the rules Ofgem has put in place, it’s in their interests to do so. However, without the right contact details, they’re stuck. That’s why we’re working together to get the message out and return money to the people entitled to it.”

Ed Rees, Energy UK’s head of retail policy, added: “We know that energy bills remain a challenge for many households and suppliers are working hard to support customers, including making sure any credit on closed accounts is quickly returned. 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.

“There are a range of easy ways to get in touch, including email and webchat, and we’d encourage customers to contact their supplier if they need help or advice. 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.” 

Under Ofgem’s Guaranteed Standards of Performance, suppliers must issue a final bill within 6 weeks and refund within 10 working days - but missing customer details are delaying this.

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