Households have been urged to claim £240million worth of unused energy credit from old accounts.
The energy regulator, Ofgem said that 1.9million energy accounts were closed over the past five years which still have credit in them, and it is urging customers to check their old accounts.
While suppliers generally try to refund customers their outstanding credit balances when they close an account, if they move on and don’t update their contact details, Ofgem says ‘it becomes almost impossible’.
Under Ofgem’s rules, suppliers must issue a final bill within six weeks and refund within 10 working days, but missing customer details delay refunds.
Claim unused credit: Ofgem is urging customers to check their old energy accounts
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 2million 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.’
Earlier this week, Ofgem said it planned to clear £500million of energy debt from 195,000 people on means-tested benefits who built up arrears of more than £100 during the energy crisis.
The first phase of the scheme is expected to launch early next year and eligible households will be expected to contribute towards their debt or ongoing energy use. If they’re unable to, they will need to be willing to work with a debt advice charity.
How to check if you’re owed money
Some households could be owed a few pounds, while others could be owed more than £100.
Ofgem says customers who have moved home in the last five years to check letters and emails for final bills and contact their supplier if they think they could be owed money.
If you think you’re owed money, you’ll need to tell your supplier your full name, previous address, account number (if known), switch details and contact information.
Ben Gallizzi, energy expert at Uswitch said: ‘This unclaimed energy credit mountain works out at £126 per household on average, so it’s a nice windfall for bill-payers who are owed a refund.
‘If you’ve moved home in the last five years, check letters and emails from your previous energy provider and get in touch if you believe you’re owed money.
‘Each energy supplier has its own process for dealing with refunds, with some preferring that you use an online form and others requiring a request over the phone or by mail.
‘Most suppliers are very good at processing refunds promptly. Our research has found that nine out of ten homes requesting credit back from their supplier receive it within four weeks.’
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