- Nearly two million closed accounts still have credit in them
- More than 90% of closed account balances are automatically returned
- Contact your energy supplier if you think you could be due money
There is about £240mn in unclaimed credit in closed customer energy accounts, according to regulator Ofgem, with as many as 1.9 million households potentially missing out on their own money.
Alongside Energy UK, the body which represents the suppliers, Ofgem is encouraging consumers who have moved home within the last five years to check if they received a final bill and refund after switching suppliers or moving home, and contact their supplier if they think they could be owed a sum of money.
The regulator insists claiming money back is simple – all customers have to do is contact their supplier or log into old accounts. Under normal circumstances, suppliers will try to reimburse outstanding credit balances to customers when they close an account.
According to Energy UK, over 90% of closed account balances are returned automatically this way. However, this becomes almost impossible if the supplier is not updated with onward contact details.
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Tim Jarvis, Director General for Retail, Ofgem, said while energy suppliers work hard to return money to people once an account has been closed, they can’t unless they have the right contact details. Therefore, Jarvis urged anyone who has moved home in the past five years to contact their old supplier and update their details.
Ed Rees, Energy UK’s Head of Retail Policy, said customers can easily reach out to their old supplier via email or webchat to make sure any credit on closed accounts is 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,” Rees said.
“ 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.”
Ofgem’s Supplier Guaranteed Standards of Performance (GSOP) means suppliers must issue a final bill within 6 weeks of closing the account, and a refund within 10 working days, but this is being delayed by missing customer details.
To mitigate this, consumers should share details including their full name, previous address, account number, switch details, and contact information to help locate old accounts.
Without the correct details, some account holders just can’t be reached, regardless of the efforts of suppliers. To return account balances to their customers, suppliers:
- Try and take as accurate a final meter reading as possible.
- Request a forwarding address from new tenants for previous tenants.
- Create easy application routes to return balances.
- Settle estates for bereavements and completion of probate.
- Use customer contact and third-party tracing with credit reference agencies, although this can take up to nine months.
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