The Big Six to return £153m to overpaying customers

10 September 2014

energy The Big Six energy companies have launched an initiative which aims to give former customers £153m back that's been sitting in their coffers as unclaimed credit from closed accounts.

The scheme is called MyEnergyCredit and has been launched by Energy UK and comes about thanks to a demand from Ofgem back in February.

Energy UK said that they want customers who have switched suppliers or moved home without leaving a forwarding address to get in touch with their old company if they suspect that they left money in an old account.

So basically, the initiative is: We've been sitting on your money for no reason so would you come and get it because we couldn't be arsed giving it you back at the time.

That said, Energy UK announced changes to try and stop this from happening in the future, but as of now, there's going to be a two-year deadline for collection of credit. If you don't claim it, they'll keep it. The Big Six say they'll give the money to vulnerable customers, but don't hold your breath.

Energy UK's chief executive Angela Knight said: "We are urging former customers to come forward and make a claim. Customers who think they haven't left a forwarding address or a final meter reading when they moved or switched should contact their old supplier."

"The web site will help you do this. Inevitably, there will be some former customers who will not be found and so the major suppliers are announcing what will happen to credit balances from now on."

"In future, after two years, the credit balance will be used to help vulnerable customers - and suppliers will make it very clear what is happening.

"By 2018, these new arrangements are expected to add up to around £65m of help to those in difficulties. The suppliers will kick start this process now by donating £38m for the first two years combined."

Ofgem chief executive Dermot Nolan said: "Today's industry announcement is an encouraging first step by the six largest energy companies to address Ofgem's call to reunite customers with their cash. It is good news for consumers and if you think you could be owed money we recommend that you contact your previous supplier."

"This issue is part of a wider challenge of delivering good customer service that the industry must crack if they are to rebuild customer trust and confidence. Failure to deliver on the initiatives announced today could trigger further action by Ofgem, including enforcement."

TOPICS:   Banking   Utilities

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