Ofgem has today called upon the big six energy suppliers to take action on the money they hold from customers’ closed accounts, currently estimated to be in excess of £400 million. Ofgem has said it expects suppliers to do more to return this money to consumers and, where balances cannot be returned, to use this to help customers more widely.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “Today’s announcement from Ofgem will be welcome news to consumers. This money may be held in closed accounts, but rightfully belongs to customers and Ofgem is absolutely right to take steps to ensure that it is returned. The parameters it has set are correct; if after all avenues are exhausted and the money still cannot be returned then the supplier should use it to the benefit of other customers.
“Over seven in ten households (73%) have gone without heating at some point this winter because of cost and over a third (36%) say that these cutbacks are affecting their quality of life or health. With so many struggling to stay warm, these funds could really make a difference. Finally, Ofgem has made it clear that prevention is the best cure and it will be expecting suppliers to tighten their processes to ensure accounts are closed properly. This is in everyone’s interests as consumers need to feel confident that suppliers are getting these basics right.”
Source: Ofgem - https://www.ofgem.gov.uk/press-releases/ofgem-calls-suppliers-take-action-over-%C2%A3400-million-they-hold-customers-closed-accounts
Research was conducted with the Uswitch.com Consumer Opinion Panel amongst 1,021 respondents in January 2014. In response to: ‘Have you gone without heating this winter to keep your energy costs down?’ 50% said ‘occasionally’, 20% said ‘regularly’, 3% said ‘always’. This adds up to 73% who went without heating at some point this winter.
Research was conducted with the Uswitch.com Consumer Opinion Panel amongst 1,021 respondents in January 2014. In response to: ‘Do you think you’re achieving the right balance this winter between keeping your home warm and managing costs?’ 36% said ‘No – the cutbacks I’m making are affecting my quality of life and/or health.’
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