As energy bills continue to strain household budgets across the UK amid the ongoing cost of living crisis, many consumers may be sitting on unclaimed refunds. The energy regulator Ofgem is urging bill payers to check their accounts for any credit balances that could be owed to them.
A credit balance occurs when customers have paid more than the energy they have actually used, commonly due to fixed monthly Direct Debit payments. During warmer months, consumers often build up a buffer of credit to cover higher heating costs in colder seasons. Additionally, suppliers sometimes overestimate bills due to infrequent or inaccurate meter readings, which can also lead to an excess credit balance.
Ofgem posted on X (formerly Twitter): “Do you have credit on your energy account? It’s important to understand how account balances work, why building up credit might be beneficial, and how to claim a refund if your current or previous supplier owes you money.”
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Customers with an active account can request a refund of any credit balance at any time. Although some suppliers automatically review accounts annually and issue refunds, consumers are not required to wait for this process. Suppliers are obligated to refund credit promptly unless they have reasonable grounds not to do so.
However, before requesting a refund, consumers should consider retaining some credit as a financial cushion for managing energy costs in colder months. To ensure accurate balance information, submitting an up-to-date meter reading is recommended.
If you have recently switched providers, moved home, or are dealing with the estate of a deceased relative, unclaimed credit may remain with a previous supplier. Under Ofgem’s guaranteed standards, suppliers must process final account closures within strict deadlines and refund any outstanding balances accordingly.
Failure to meet these deadlines not only obligates suppliers to return the money but also to pay compensation. Should a supplier fail to pay compensation within 10 working days of identifying a breach, they may owe further penalties: £40 or £30 if the breach happened before January 2, 2025.
To claim any owed money, start by checking your most recent bill or logging into your online account if active. For closed accounts, contact your former supplier directly, keeping your old account number or property address handy to facilitate the process.