UK (Parliament Politics Magazine) – UK regulator Ofgem proposes £30 energy credit for new home movers to tackle rising £4.5bn debt and speed up account setup.
As reported by The Guardian, UK home movers will have about 14 days to open an energy account before supply is cut, as Ofgem moves to tackle growing energy debt.
How does Ofgem plan to curb growing energy debt for home movers?
Under new proposals from the energy industry, meters may be remotely switched to prepayment mode as the previous resident moves out, giving the next resident £30 of credit to start their home. This allowance lasts about two weeks on average, after which residents risk losing electricity unless they have arranged a new supplier account.
Ofgem aims to encourage faster account setup to tackle Britain’s soaring energy debt, which has more than doubled to around £4.5bn, over pre-crisis levels.
After relocating, households usually wait 70 days to open an energy account, with all gas and electricity used during that time charged to “the occupier.” This can make households build up energy debt, resulting in surprise bills or unpaid costs. The average British energy bill has risen by £52 due to unpaid debts, covering losses from suppliers that failed during the 2021 energy crisis.
What did Charlotte Friel say about rising energy debt and home-move reforms?
Charlotte Friel, a director at Ofgem, said,
“The growing amount of debt in the energy system is a significant challenge that affects us all.”
“For those living with the stress of debt, for households paying higher bills to cover historic debts, and for an industry carrying the weight of unpaid costs – the impact is huge,”
she stated. Ms Friel highlighted that home-move process changes are required and urged consumer groups, suppliers, and charities to provide feedback in Ofgem’s consultation before next year.
She added,
“Moving home is stressful enough – add energy debt and it’s worse. That’s why our new proposals aim to stop debt in its tracks, tackling today’s problem and preventing tomorrow’s.”
How many energy accounts are left unclaimed?
The recent data from Ofgem shows around 1.9 million energy accounts closed over five years, leaving £240 million in unclaimed credit. On average, each closed energy account is owed roughly £126, though some refunds may be lower. Ofgem urged recent home movers to verify if they are due a refund from their old account.
Tim Jarvis, the regulator’s markets director, said suppliers try to return money when accounts close, but without correct contact details, they are unable to do so. He added,
“The message is clear – if you’ve moved in the last five years, reach out to your old supplier, provide them with the correct information, and you could be due a refund.”
How to check if an old UK energy account holds unclaimed refunds?
- List all energy suppliers used in the last five years.
- Review old emails, letters, or texts for account details or final bills.
- Contact the old supplier with name, previous address, and account number (if available).
- Ask for the final account balance and request any remaining credit refund.
- Keep your direct debit active until the final bill is settled.
- Escalate to the Energy Ombudsman if the refund is delayed beyond eight weeks.