Millions of UK households could be sitting on hundreds of pounds in unclaimed energy credit from closed accounts, according to startling new research from regulator Ofcom. The revelation comes as families continue to grapple with persistently high energy costs despite recent price cap reductions.
The Hidden Credit Crisis
Ofcom's investigation uncovered that a significant portion of energy customers who have switched suppliers or moved home may have left behind credit balances that rightfully belong to them. These dormant funds, often forgotten in the chaos of moving or switching, could provide much-needed financial relief for struggling households.
How Credit Builds Up
Most energy customers pay by direct debit, with suppliers estimating usage and setting monthly payments. This system frequently leads to overpayment, particularly during warmer months when energy consumption drops. While suppliers typically refund active customers, those who close accounts often face hurdles reclaiming what they're owed.
Common scenarios include:
- Moving to a new property without requesting a final bill
- Switching energy suppliers and assuming all financial matters are automatically resolved
- Final bills not accounting for actual meter readings
- Administrative delays in processing account closures
What Ofcom Found
The regulator's research indicates that the problem is more widespread than previously thought, with potentially millions of pounds sitting in closed accounts across the energy sector. While exact figures remain confidential during the ongoing investigation, insiders suggest the average owed amount could exceed £100 per household.
Your Rights to Reclaim
Energy companies are legally obligated to return any credit balance when an account closes, but the process isn't always straightforward. Customers who suspect they're owed money should:
- Contact their previous energy supplier directly
- Provide proof of address and account details
- Request a final statement and credit refund
- Escalate to the Energy Ombudsman if unsatisfied with the response
The Supplier Perspective
Energy companies maintain they make reasonable efforts to return credit balances, but acknowledge that outdated contact information and incomplete account details can complicate the process. Most suppliers have dedicated processes for handling dormant account credit, though consumer groups argue these could be more proactive.
With energy prices remaining well above pre-crisis levels, this hidden credit represents a significant opportunity for financial recovery for many UK families. Ofcom continues to monitor the situation closely and may introduce new regulations if voluntary industry measures prove insufficient.
