Consumers urged to reclaim energy credit as £240m sat in old accounts

Around £240 million of energy credit is sitting in closed account balances and could be reclaimed by consumers, the UK’s energy watchdog has said.

Ofgem and trade association Energy UK are urging people who may be due money to get in touch with their old supplier.

Data shows that 1.9 million closed accounts have credit in them.

Consumers who have moved home in the last five years may have money left in their accounts, but that could not be refunded because their contact details have not been updated.

More than 90% of closed account balances are returned automatically, and suppliers will always try and make sure outstanding credit is refunded, according to Energy UK.

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’s 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 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.”

Ed Rees, Energy UK’s head of retail policy, said: “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.”

Under Ofgem’s rules, suppliers are required to issue a final bill within six weeks of an account being closed and refund within 10 working days.

Delays happen when customer details are missing and a refund cannot be made.