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Energy firms urged to return £400m to ex-customers

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
28/02/2014

Ofgem is calling on the big six energy suppliers to return £400m of credit sitting in closed accounts back to former customers.

The credit has built up as a result of customers changing supplier or moving house, the regulator said.

Ofgem said the largest suppliers – British Gas, Eon, EDF, Scottish Power, npower and SSE should do all they can to return money to individual consumers, and to tell consumers clearly what to do when closing an account.

Where it is not possible to repay a balance, the regulator said suppliers should find ways to use this money to benefit consumers more widely, and make clear to customers how much is held and why.

Andrew Wright, interim chief executive of Ofgem, said: “When many people are struggling to make ends meet, it is vital that energy companies do the right thing and do all they can to return this money and restore consumer trust.”

“We want to see decisive action by suppliers, individually and collectively, to address this issue and, wherever possible, to ensure that the balances they currently hold are returned to consumers.”

Ann Robinson, director of consumer policy at comparison site uSwitch.com, said: “Today’s announcement from Ofgem will be welcome news to consumers. This money may be held in closed accounts, but rightfully belongs to customers and Ofgem is absolutely right to take steps to ensure that it is returned.”

Ofgem’s call comes after most of the big six energy firms agreed to automatically refund direct debit customers when they are in credit.

 


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