Introduction
Nearly two million households in the United Kingdom may be entitled to refunds totalling an estimated £240 million from closed or dormant energy accounts, according to official figures from the energy regulator.
Ofgem and Energy UK have issued an urgent call to action, particularly targeting those who have changed address within the past five years, encouraging them to check if unclaimed credit remains with their previous energy suppliers.
This development comes as the country continues to contend with high energy costs and living expenses.
Dormant Credits Identified
Energy UK estimates that over ninety per cent of balances from closed energy accounts are refunded automatically. Nevertheless, recent data highlights that approximately 1.9 million closed accounts still retain credit, representing a collective value of around £240 million.
Tim Jarvis, Director General for Retail at Ofgem, stated: 'It’s understandable that some things will be missed during a house move. But with almost two million closed accounts currently in credit, 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.'
Who Could Be Owed Money
Consumers who have switched energy providers, relocated, or closed their accounts within the previous five years are urged to review their former accounts for unclaimed balances. While the majority of refunds are processed automatically, unreturned credits are frequently linked to incorrect or outdated contact details.
Ed Rees, Head of Retail Policy at Energy UK, advised: 'It’s always important to keep your contact details up to date so your supplier can provide support when you need it and so they can also then return unclaimed funds promptly.
If you’re moving, switching or closing an account, remember to keep your direct debit active until your final bill has been settled to avoid leaving money unclaimed.'
Regulator’s Response
Ofgem has confirmed that the sector’s suppliers endeavour to return outstanding credit wherever possible. However, persistent challenges, such as inaccurate or missing customer information, mean millions of pounds remain undelivered.
The regulator has recently announced that up to half a billion pounds in energy sector debt will be cleared, with the associated costs distributed among UK households via bill increases.
Energy Affordability Crisis
This issue arises against a backdrop of heightened energy prices, a situation exacerbated by post-pandemic market volatility and global factors, including the conflict in Ukraine.
Rising gas and electricity costs since late 2021 have intensified pressures on household finances, prompting ongoing debate over how best to support consumers.
Industry Guidance for Consumers
Industry bodies and consumer advocates recommend that individuals who have relocated, switched, or closed energy accounts in the last five years get in touch with their previous suppliers to verify any outstanding balances.
Households are also reminded to ensure that direct debits remain active until all final bills are paid, helping to prevent credits from being left behind.
Final Summary
The discovery of nearly £240 million in dormant energy account credit provides an opportunity for millions of UK households to reclaim lost funds at a time of heightened living costs.
Ofgem’s guidance is clear: consumers who have recently moved should proactively contact former suppliers to ensure no money remains unclaimed. While the initiative may offer relief to some, wider concerns continue regarding the long-term affordability of energy for UK families.
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