Massive Unclaimed Credits: What Ofgem’s Update Means for Consumers
Nearly two million energy customers could be owed a share of about £240 million after accounts were closed while still in credit. Ofgem, the energy regulator, revealed new figures showing that a substantial amount of customer credit became stranded when supplier accounts were closed, sometimes leaving consumers without a clear path to reclaim their funds.
The situation highlights how changes in energy supplier administration and account handling can affect ordinary households. While the total sum is sizeable, the real story is about getting money back into the hands of customers who are due it and ensuring the process is fair, transparent, and simple to navigate.
Why Do Credits Become Unclaimed?
Credits accrue for various reasons: closing accounts while there is a positive balance, administrative errors, or transfers between suppliers that leave leftovers behind. When a customer’s account is closed, any remaining credit can sometimes be stuck if there isn’t an automatic mechanism to transfer it to the customer or to a new supplier that can issue a refund. Ofgem’s latest briefing aims to shine a light on the scale of the issue and push energy firms to improve how they handle customer funds.
Who is Affected?
According to Ofgem, the affected group includes millions of bill payers who opened accounts with different suppliers over the past several years. Some customers may have switched providers or left the market for a period, only to discover their credit was left behind when the old account closed. In many cases, these are ordinary households and small businesses that relied on accurate billing and refunds, not large corporate accounts.
What Are Consumers Being Told to Do?
While Ofgem works with suppliers to identify unclaimed credits, consumers should take proactive steps. Start by gathering recent energy bills, account numbers, and any correspondence from your supplier. If you’ve switched providers, check old accounts and contact the former supplier’s customer service with proof of the credit balance. In many cases, refunds can be issued via a bank transfer, a cheque, or a credit note tied to a future account.
Regulators emphasise that customers do not need to wait for a formal call from their old supplier. If you suspect you are owed money, you should contact the old energy company directly and request a trace or reallocation of the balance. In parallel, Ofgem and the industry are expected to improve tracking systems and ensure that credits don’t slip through the cracks in the future.
What’s Being Done to Fix It?
Energy regulators are pressuring suppliers to review past closed accounts and identify any credits that remain unclaimed. The goal is to return the £240 million to rightful owners and implement better processes to prevent a similar situation from happening again. This includes clearer communication with customers, more robust account closure procedures, and streamlined refund pathways that can be accessed easily by consumers.
Tips for a Smooth Refund Experience
- Keep a record of all energy accounts, including old supplier names and account numbers.
- Contact former suppliers quickly if you spot an old credit balance.
- Be prepared to verify identity and provide address details to confirm ownership.
- Monitor updates from Ofgem and your current supplier for ongoing relief programs or refunds.
The Bottom Line
With Ofgem shining a spotlight on nearly £240 million in unclaimed energy credits, millions of households have a chance to recover funds that were once thought lost. While the onus remains on energy firms to clean up old records, consumers should act promptly, keep documentation, and pursue refunds through the proper channels. As the industry works toward more transparent and efficient refund mechanisms, the overall experience for customers should improve in the years ahead.
