Millions of households across the UK could be in line for an unexpected financial boost, as the energy regulator announces a major push to return unclaimed credit.
Are You Owed Money?
According to Ofgem, a staggering 1.9 million closed energy accounts still hold customer credit, totalling an estimated £240 million. This situation primarily affects people who have moved home within the last five years.
While Energy UK confirms that suppliers automatically refund more than 90% of closed account balances, a significant number of payments have failed to reach their intended recipients, often due to outdated contact details.
How to Claim Your Refund
Tim Jarvis, Ofgem’s Director General for Retail, acknowledged that things can be overlooked during a hectic house move. He issued a clear call to action: “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, offered practical advice to prevent this issue. “It’s always important to keep your contact details up to date,” he stated, adding, “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.”
Broader Energy Debt Crisis
This refund initiative comes against a challenging backdrop for UK energy consumers. The regulator also announced that up to £500 million in energy debt will be paid off through bill increases spread across millions of households.
This debt has accumulated following the severe energy affordability crisis, where electricity and gas prices soared from late 2021. This was driven by the post-pandemic economic reopening and Russia’s invasion of Ukraine.
However, the government's approach has faced criticism. A committee of MPs described Ofgem's debt scheme as “barely scratching the surface.” Committee chairman Bill Esterson, in a letter to the regulator, demanded “out of the box thinking” and argued that “parts of the sector that are making healthy profits become part of the solution.” He emphasised that the cost “cannot simply always come down to higher bills today with the promise that they may come down in the future.”
