£240m in unused credit waiting to be returned, says Ofgem
Ofgem and energy suppliers are urging consumers to check whether they are owed money after revealing £240 million in unclaimed credit remains in 1.9 million closed energy accounts.
The regulator says anyone who has moved home or switched suppliers in the past five years should check letters, emails or old online accounts to see if they are due a refund.
While more than 90% of closed account balances are automatically returned, many go unclaimed because customers have not updated their contact details or forwarding addresses.
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 six weeks and process any refunds within ten working days, but this can be delayed if customer contact details are missing.
To check for unclaimed balances, consumers are advised to contact their old supplier directly, providing their full name, previous address, and account details if available.
Suppliers are continuing to take steps to reduce unclaimed balances, including improving customer communication, tracing old accounts through credit agencies, and offering easier online refund applications.
Ofgem says it wants to ensure every customer receives what they are owed, no matter how small the amount.
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