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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Energy UK: Funds held due to lack of account details

Energy companies are commonly owed much more money by people who leave unpaid debts behind them than the surplus that is left in accounts, a spokesman for the industry's trade association Energy UK has said.

He said suppliers agreed with ministers last year they would take "all reasonable steps to trace customers who leave a credit balance behind" but often face stumbling blocks because of a lack of account details.

Although companies are working to return money where there are credit balances sometimes former domestic customers provide no new contact details so suppliers don't know how, or to whom, they can return the money.

The most common reasons energy companies end up holding funds are when the bill payer has moved home or when a customer dies and suppliers have no record of the next of kin.

– Energy UK spokesman

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