You are here: Home - Household Bills - News -

Energy suppliers return £670m to customers but ‘still owe £1bn’

0
Written by:
21/12/2016
Large energy suppliers have returned almost £670m owed to customers who closed their accounts since the start of 2014, according to Ofgem.

The regulator raised concerns back in 2014 that suppliers were holding millions of pounds in closed account credit balances from former domestic customers that they were not paying back.

Large suppliers have since paid back almost 90% of the cash, according to new industry data.

Most of the payments to these former customers were made within 14 days of a final bill being issued in line with the commitment suppliers made in 2014, Ofgem said.

Ofgem’s chief executive Dermot Nolan said: “Trust can only be restored in the energy market if consumers get good levels of service. So it is good to see the industry has made progress in returning consumers’ money when someone switches energy supplier. We will continue to monitor this area to ensure prompt payment to consumers is standard practice.”

Despite the progress, comparison site Gocompare.com said households should not allow large credit balances to build up on their account.

It cited the issues surrounding the recent collapse of GB Energy Supply, the first domestic energy supplier to close in ten years.

While Ofgem provides a safety net for customers should an energy provider go out of business, including ensuring customers will not lose any credit balance, Gocompare said “it’s likely households will become increasingly cautious about having large credit balances with their supplier”.

Research by the comparison site found millions of homeowners have a positive balance in their utility bills and are currently owed, on average, £86.60 by their energy supplier. Collectively, this means energy providers are profiting from £1bn in overpaid bills.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Mortgage approvals recovering from Brexit effect

Mortgage approvals rose 1.3% between October and November, the first significant growth since the EU Referendum in June.

Close