£240m sitting in old energy accounts – Are you owed money?

Energy regulator Ofgem is urging millions of UK households to check if they are owed a share of the £240 million left in closed energy accounts. The money is sitting unclaimed in around 1.9 million accounts that were closed when customers moved house or switched suppliers. Suppliers are meant to issue automatic refunds, however contact with a customer can be lost after they move. While the numbers seem high, over 90% of closed account balances are automatically returned to customers, according to the trade body Energy UK.

Tim Jarvis, Director General for Retail at Ofgem, said: “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.”

The £240 million figure is separate from the billions of pounds in credit held in current energy accounts, with recent estimates suggesting this figure was over £3 billion, with the average household in credit by over £200. As winter approaches and with energy bills on the rise, reclaiming what you are owed - whether from an old or current supplier - could provide a welcome financial boost.

How to reclaim money from your old energy supplier

If you have moved house or switched suppliers, it is worth checking if you left any money behind. To claim what is owed, do the following:

• Log in to your old account: The simplest way to check whether you are due a refund is to log in to your energy account from your old energy supplier.
• Contact your old supplier directly: If you do not have your login details or you cannot access your online account, then you should contact your old energy supplier by phone or web chat. To help them locate your old account, you will need to provide your name, the address where you were a customer, and ideally your old account number (if you can find it on an old bill).
• Ask for your refund: If there is a leftover balance in your old energy account then you should ask the provider to refund it. You may have to provide up-to-date details so that the supplier can process the payment

Suppliers are obligated to refund any credit you are owed, no matter how long ago the account was closed. Under Ofgem rules, they should have sent you a final bill within six weeks of you leaving, and paid any refund within 10 working days of that final bill.

Can I claim back money from my current energy supplier?

Yes. Most people in the UK pay for their energy with a fixed monthly Direct Debit. This payment is an estimate based on your expected annual usage. The system is designed to smooth out your payments, meaning you don't face huge spikes in your bills as the weather changes throughout the year. This means that during the summer months, when your heating is off, you typically pay for more energy than you use, building up a credit balance. While it is sensible to have some credit in your account as winter approaches, many households have built up balances far larger than necessary.

The good news is that you are entitled to a refund if your account is in credit with your energy supplier. Energy regulator Ofgem's rules stipulate that 'if your account is in credit, you can ask for a refund at any time'. Your supplier must return the money promptly unless they have a 'fair and reasonable' justification for not doing so. We explain this in more detail in our article 'Energy payment cycle explained'.

How to reclaim credit from your current supplier

You are entitled to request a refund if you believe you have too large a credit balance. Simply follow the steps below:

• Check your balance: Log in to your supplier's website, use their app, or check your most recent statement.
• Submit a meter reading: This is the most important step. Your supplier needs an up-to-date reading to know your exact balance. If you have a smart meter, this should be sent automatically.
• Request your refund: You can call your supplier, use their online chat, or find a 'request a refund' option in your online account.

Under Ofgem's rules, your supplier must send you a refund promptly unless they have a valid reason not to, for example, if they need to wait for your latest meter reading.

What if I have problems getting my money?

If your supplier - current or old - refuses to give you a refund you believe you are owed, you should first make a formal complaint to them. If they don't resolve the complaint within eight weeks, or you are unhappy with their final decision, you can take your case to the Energy Ombudsman. This is a free and independent service that can investigate the issue and has the power to order the supplier to pay you.

Beware of scams

Ofgem has warned that fraudsters may use this news to try and steal your personal details. Ofgem will never contact you directly by phone, text, or email to request your bank details or offer a refund. If you receive any contact like this, it could be a scam. Always contact your supplier directly through their official website or the phone number on your bill. For more information on managing your household finances, read our article on 'How to save money on your energy bills' and 'What to do if you’re struggling to pay your energy bills'.