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Energy firms told to refund £400m from closed accounts

The major energy firms are being told to hand back more than £400m owed to nearly four million customers in credit from closed accounts by the industry regulator. The credit was left in accounts when they have moved house or switched suppliers.

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Big Six told to pay £400m back to former customers

Accounts have been often left with a surplus of funds after people have moved house, changed their details or switched suppliers. Credit: Gareth Fuller/PA Wire

Ofgem will today call on the Big Six energy companies to hand back more than £400m that remains in accounts closed by their former customers.

Around 3.5 million households and 300,000 business accounts are believe to be affected by the issue.

The Big Six - Centrica's British Gas, EDF Energy, Eon, Npower, Scottish Power and SSE - supply 98% of UK homes and have all increased their prices in recent months.

Ofgem chief executive Andrew Wright is understood to have written to the companies telling them to give customers whose accounts were not shut down properly their money back.

He wants any funds that cannot be returned to be used to reduce bills for existing customers.

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