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Many people who have moved within the past five years may have some unclaimed money lingering in their old gas and electricity accounts. According to the regulator Ofgem and suppliers, approximately £240m is waiting to be returned to customers from closed energy accounts. While energy suppliers are required to refund any credit owed to customers, it can be challenging to do so if contact details are out of date.
Customers are encouraged by Energy UK, a representative body for suppliers, to check any letters or emails and reach out to their old suppliers if they suspect they have outstanding credit. Although the majority of closed account balances are usually returned automatically, there are instances where it becomes difficult to contact individuals after they have moved and closed their accounts, prompting customers to take matters into their own hands and investigate.
According to Tim Jarvis, the director general for retail at Ofgem, the process of moving house inevitably entails a lot of administrative tasks, and it is understandable that certain things may slip through the cracks. With almost two million closed accounts currently in credit, Jarvis emphasizes the importance of reaching out to old suppliers with updated information to potentially receive a refund. Energy UK advises customers to maintain an active direct debit until the final bill is settled, with any excess credit being automatically refunded to them.
In line with Ofgem rules, suppliers are required to issue a final bill within six weeks, followed by a refund within 10 working days. However, delays are being caused by missing customer details, prompting Ofgem to address the issue. Recently, Ofgem revealed plans to tackle the record levels of debt owed by customers to suppliers, with energy debt and arrears in England, Wales, and Scotland increasing by £750m in a year to reach £4.4bn. The proposed solution involves spreading the burden of clearing this debt through higher bills for all consumers, a move that has faced criticism.
Critics argue that parts of the energy sector that are generating significant profits should bear the responsibility of contributing towards addressing the debt issue, rather than placing the burden solely on consumers. Currently, most households are already paying an average of £52 per year to handle historic debt, leading to concerns about the potential impact of further increasing bills to tackle the mounting debt within the energy market
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