Ofgem and Energy UK have issued a message urging households who have moved house in the last five years to check if they are owed a refund from old energy accounts.
Ofcom has announced that two million households are due to receive £240m from dormant energy accounts. Ofgem and Energy UK have issued a call to action for anyone who has relocated in the past five years.
According to Energy UK, over 90% of closed account balances are automatically refunded, and suppliers always endeavour to ensure any outstanding credit is returned. However, data reveals that 1.9 million closed accounts still hold credit.
Tim Jarvis, Ofgem’s Director General for Retail, acknowledged that “it’s understandable that some things will be missed” during a house move.
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“But with almost two 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.”
The energy regulator has declared that up to £500 million in debt will be cleared through bill increases distributed among millions of UK households, reports Birmingham Live.
The UK is grappling with an energy affordability crisis following a surge in electricity and gas prices since late 2021, fuelled by the reopening of economies post-pandemic and Russia’s invasion of Ukraine.
Ed Rees, Energy UK’s Head of Retail Policy, emphasised: “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.
“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.”
In response to Ofgem’s newly unveiled scheme, a group of MPs expressed that it “barely scratches the surface” of the debt.
In a letter addressed to the regulator, committee chairman Bill Esterson emphasised that the cost crisis requires “out of the box thinking” from the Government and Ofgem. He urged that “parts of the sector that are making healthy profits become part of the solution to dealing with the high cost of energy”.
He penned: “It cannot simply always come down to higher bills today with the promise that they may come down in the future.”