Almost 2 million energy bill payers could be owed a share of £240m from old accounts that were closed while still in credit, according to the regulator.
The latest figures from Ofgem show that about 1.9m energy accounts were closed over the past five years, with outstanding credit balances totalling £240m left unclaimed.
The regulator is urging anyone who has moved in recent years to check whether they are owed a refund from their previous account. Some may be owed only a few pounds, but others could be owed more than £100, Ofgem said.
Tim Jarvis, Ofgem’s director general of markets, said that although suppliers “work very hard to return money to people” when they close an account, in line with industry rules, “without the right contact details, they’re stuck”.
“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,” Jarvis said.
Energy bill payers face a difficult winter after the regulator lifted the maximum cap that suppliers can charge their 29 million household customers for each unit of gas and electricity from the start of this month.
The average price cap for households paying by direct debit increased by £35 to £1,755 for a typical annual dual-fuel bill, despite a 2% fall in the wholesale price in the energy markets over the summer, reigniting concerns about energy affordability in the UK.
Ofgem said on Thursday that it would move ahead with plans to clear £500m of debt from about 195,000 people on means-tested benefits who have built up debt of more than £100 during the energy crisis.
The first phase of its scheme could offer debt relief of about £1,200 per account, or about £2,400 per dual-fuel customer, to eligible bill payers. The cost of this policy would be paid for by adding about £5 a year on the average dual-fuel bill by 2027-28.
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This measure is expected to make only a small dent in Britain’s deepening energy debt crisis, which reached a record £4.4bn in unpaid bills as of the end of June. The Office for National Statistics found that a record proportion of British households were unable to pay their energy bills by direct debt in April because there was not enough money in their bank accounts.
