The UK “Big Six” suppliers to pay back £153m from closed accounts

The UK’s largest energy suppliers have collectively agreed to pay back more than £153m from closed accounts to 3.5 million domestic customers, energy market regulator Ofgem has announced today.

British Gas owner Centrica, SSE, ScottishPower, E.On, EDF and npower have accumulated a total of more than £400m over the past six years after their customers (both households and firms) had moved or switched suppliers.

It is estimated that every domestic account should receive a 50 pound refund. Although today’s announcement refers strictly to householders, the industry has committed to taking a similar approach to small businesses, and Ofgem will hold suppliers to account on their progress in both markets.

Dermot Nolan, Ofgem Chief Executive, 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. And while Ofgem welcomes the progress made to date, suppliers must now do everything within their powers to return the money and prevent a similar situation from happening again. Failure to deliver on the initiatives announced today could trigger further action by Ofgem, including enforcement.”