Ofgem and energy suppliers encourage consumers to reclaim £240 million in closed account balances

• £240 million of energy credit in 1.9 million accounts is unclaimed
• Ofgem and suppliers are urging consumers who have moved home in the last five years and think they may be due money to contact their old suppliers and see if they're owed a refund
• Suppliers need up to date contact information to return funds – while many eligible will only be due a few pounds, some could be owed more than £100

Around £240mn of unclaimed credit balances in closed accounts are waiting to be returned to consumers, according to data from energy regulator Ofgem.

Consumers who have moved home in the last five years are being encouraged by Ofgem and Energy UK, the body which represents suppliers, to check letters and emails for final bills and contact their supplier if they think they could be due money.

The latest Ofgem figures show 1.9mn closed accounts still have credit in them. All customers have to do to check if they are owed money is to contact their suppliers or log into old accounts.

Suppliers always try and get any outstanding credit balances back to consumers when they close an account, but if the person moves on and doesn't update them with onward contact details, it becomes almost impossible.

More than 90% of closed account balances are returned automatically according to Energy UK, and suppliers want to ensure all consumers get what they are owed.

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, 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.”

Under Ofgem's Guaranteed Standards of Performance, suppliers must issue a final bill within 6 weeks and refund within 10 working days - but missing customer details are delaying this.

Consumers are being urged to check if they received a final bill and refund after switching suppliers or moving, and contact their old supplier or log into their old online account if you had one.

When contacting suppliers, consumers should share full name, previous address, account number (if known), switch details, and contact information to help locate old accounts.

Suppliers already work to minimise balances and return account balances to consumers. This includes by:

• Avoiding account balance build up by engaging with customers whose balances are rising
• Attempting to take accurate final meter reads
• Asking new tenants for forwarding addresses for previous tenants
• Creating easy application routes to return balances from cheques and via company websites and exploring other contact channels, such as increased use of email and Post Office Cash Out Vouchers
• Settling estates for bereavements and the completion of probate
• Using customer contact and third-party tracing with credit reference agencies for even relatively small balances after a period they are likely to have built up a new profile. This can take up to 9 months.

Without the correct details, though, some account holders can't be contact – so speaking to old suppliers is critical.

Call to action

Ofgem and suppliers are sending out a clear message – if you've moved in the last five years, phone your suppliers or log into old accounts to update details – you may be owed money.