Individuals who have moved residences in the last five years may be eligible for unclaimed credit from their previous gas and electricity accounts. Regulatory body Ofgem, along with energy suppliers, has indicated that approximately £240 million is available in closed energy accounts, with around 1.9 million accounts holding credit. While many individuals might only recover a small amount, there are some who could receive refunds exceeding £100.
Energy UK, which represents energy suppliers, emphasizes the importance of reviewing communications from previous suppliers and encourages customers to reach out if they suspect any outstanding credit. Although more than 90% of closed account balances are returned automatically, the process can be cumbersome due to difficulties in contacting customers post-move.
Tim Jarvis, Ofgem’s Director General for Retail, noted the complexity involved in moving homes, which may lead individuals to overlook such matters. He urged those who have relocated in the last five years to engage with their prior suppliers to potentially reclaim funds. Energy UK further advises maintaining direct debit payments until the final bill is settled, as remaining credit should be automatically issued to customers.
Under existing Ofgem regulations, suppliers are required to send a final bill within six weeks and process refunds within 10 working days. However, delays are often attributed to missing customer details. Recently, Ofgem has proposed measures to address the increasing energy debt, which has risen to £4.4 billion in England, Wales, and Scotland, reflecting a £750 million increase over the past year. While the plan to address this debt could result in higher bills for other customers, concerns have been raised regarding equity, with calls for profitable sectors to contribute to alleviating this financial burden. Households on price cap tariffs currently contribute approximately £52 annually to manage historic debts, which are included in the overall annual bill of £1,755.
Source: https://www.bbc.com/news/articles/czxkwznp5r1o?at_medium=RSS&at_campaign=rss