The energy regulator has revealed 1.9 million closed energy accounts still have money sitting in them
Ofgem is urging almost two million households to reclaim their share of £240million in forgotten energy credit.
The energy regulator has revealed 1.9 million closed energy accounts still have money sitting in them. This includes households that have moved home in the last five years, where their old energy supplier has not been able to get in contact with them.
Ofgem estimates some people could claim back more than £100, while others may only be due back a few pounds. Energy suppliers are required to issue a final bill within six weeks of an account being closed and refund within ten working days.
More than 90% of closed account balances are returned automatically. Ofgem and trade association Energy UK are urging people who may be due money to get in touch with their old supplier.
People are being encouraged to check letters and emails for final bills, and contact their supplier or log into old accounts if they think they’re owed money.
Tim Jarvis, Ofgem 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 2 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.
“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 head of retail policy, said:“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.”
It comes as energy bills have risen again. The Ofgem price cap has increased to £1,755 for a typical dual fuel household paying by direct debit.
But there isn’t actually a total cap on what you can pay for energy – the price cap just sets the limit you can be charged for unit rates of gas and electricity, plus the standing charges.