Consumers could be due £235 million from old energy accounts
A quarter (23%) of consumers admit they’re unsure whether they left old energy accounts in credit
Four in five (79%) consumers with credit outstanding say they reclaimed an average of £88 each – with some receiving as much as £300
Energy suppliers launched the ‘My Energy Credit’ campaign six months ago to help return unclaimed balances to customers, but the findings suggest more can be done
Customers should check with previous energy suppliers to see if they are owed a refund.
Up to £235 million of consumers’ money could still be lying dormant in the closed energy accounts of 2.7 million homes – despite efforts to reunite the cash with customers, according to a new survey by Uswitch.com, the independent price comparison and switching service.
Almost a quarter (23%) of bill payers who have switched supplier admit they don’t know whether they have credit remaining in previous energy accounts.
The figures, from a survey of 2,000 UK adults, also reveal that over half (52%) of households who switched supplier closed their old account in credit, with four out of five (79%) successfully reclaiming an average of £88 each. A quarter (24%) said they received more than £100, with some claiming as much as £300. Over half (53%) of those who have reclaimed credit used it to pay for bills and rent, while a quarter (24%) put it into savings.
The survey findings, published six months after the launch of the energy industry’s ‘My Energy Credit’ campaign, suggest that more can be done to help consumers who have moved or switched supplier to claim any money left behind. There is no time limit on legitimate claims and consumers should check with any previous suppliers to see if they are due a refund.
Tom Lyon, energy expert at Uswitch.com, says: “It’s fantastic to see so many households successfully reclaiming what is rightfully theirs, yet almost a quarter could still be missing out on balances left languishing in dormant accounts. With six in ten people admitting they are rationing their energy use to save money, any unclaimed funds could go a long way to helping pay this winter’s bills.
“We urge the industry to continue with its campaign to help reunite as many consumers as possible with money from old accounts. It’s particularly encouraging to see that almost two thirds of consumers who claimed money back said they found the process easy.
“Consumers should check with any previous suppliers to see if they’re due a refund. If you’re about to switch, make sure to take meter readings and give them to both companies for a final statement. This will ensure that your old account is closed properly and you receive any refund due.”
For more information on getting a refund on energy credit visit our guide.
FOR MORE INFORMATION
Jason Wakeford
Phone: 0203 872 5612
Email: jason.wakeford@uswitch.com
Twitter: @UswitchPR
Notes to editors
Research conducted by Opinium from 20th to 23rd February 2015, amongst 2,002 UK adults (aged 18+). Respondents were asked, among other questions, if they had ever switched energy provider; if so, whether their account was closed in credit; and how much they claimed back if they had done so (see questions below). Final figures are therefore based on respondents’ estimates to these questions. Results have been weighted to nationally representative criteria. Consumers refers to those who are involved in decisions regarding their energy provider for their household energy.
In response to, ‘Have you ever switched energy provider’, 63% of all respondents surveyed indicated they have switched energy providers. Of these, 52% said their account was closed in credit, 25% said it wasn’t, and 23% said they don’t know / are unsure.
Of the 52% who said their account was closed in credit, 79% said they had claimed money back, with the average stated at £88. Focusing on the 23% of energy provider switchers who said they don’t know / are unsure if their account was closed in credit, and applying to this the ratio of energy switchers who said their account was closed in credit (52%) to energy switchers who said their account wasn’t closed in credit (25%), then potentially an additional (52 / (52 + 25)) x 23% =16% of energy switchers could have their account closed in credit. Assuming an even distribution, 63% x 16% x 26.4 million households (ONS figures, 2013) = an additional 2.67 million households who have switched energy providers and could have their account closed in credit. If these households claimed the average amount as those who have claimed money back at an estimated £88, then this would amount to 2.67 million households x £88 = £234,960,000 which could potentially be claimed by those who don’t know / are unsure if their account was closed in credit. The average of £88 was calculated by taking the midpoint in each of the value ranges (from the table in point 2) multiplied by the number of respondents who selected that value range, aggregating this for all the different value ranges, and dividing this by the total number of respondents who claimed money back (excluding those who selected ‘don’t know/unsure’). The calculations are: (225.5 + 4415.5 + 5025.5 + 4535.5 + 6745.5 + 6463 + 6388 + 68125.5 + 37175.5 + 27225.5 + 12275.5 + 16300) / (655 – 26 – 112 ) = £88.05 (£88 rounded figure) Please note that for ‘Yes – more than £300’, the value used for calculation purposes was £300 to produce conservative figures.’
Table below shows response to, ‘You mentioned your account was closed in credit the last time you left your energy supplier. Did you claim this money back? And if so how much were you able to claim back?’
| Amount claimed back | % of people who had their account closed in credit | ||
|---|---|---|---|
| Yes - £1 – £10 | 3% | ||
| Yes - £11 – £20 | 7% | ||
| Yes - £21 – £30 | 8% | ||
| Yes - £31 – £40 | 7% | ||
| Yes - £41 – £50 | 10% | ||
| Yes - £51 – £75 | 10% | ||
| Yes - £76 – £100 | 10% | ||
| Yes - £101 – £150 | 10% | ||
| Yes - £151 – £200 | 6% | ||
| Yes - £201 – £250 | 4% | ||
| Yes - £251 – £300 | 2% | ||
| Yes – more than £300 | 2% | ||
| No – I did not claim any money back | 4% | ||
| Don’t know / unsure | 17% |
In response to, ‘Thinking about the money you claimed back, what did you do with it?’ (53%) of those who claimed money back answered ‘it went towards basic savings e.g. bills & rent’, with (24%) answering ‘saved it’
In response to: ‘Which ONE of the following statements BEST applies to you?’, 35.54% of energy consumers said I am already cutting back on the amount of energy I use to make my bills cheaper and 21.94% said I am planning to cut back on the amount of energy I use this winter to make my bills cheaper. 35.54% + 21.94% = 57.48% of energy consumers who have already reduced, or plan to reduce, their consumption over the winter months to save money. In response to, ‘To what extent did you find the process of claiming your money back easy or difficult?’ (45%) of those who claimed money back answered ‘very easy’, with (19%) answering ‘slightly easy. 45% plus 19% equals 64%. According to the “MyEnergyCredit” campaign, £153 million in credit remains to be claimed. This figure refers to the amount of credit accumulated by domestic households who have left the ‘big six’ energy suppliers over the last six years, whereas grossed up figures referenced here refer to domestic households who have ever left any of their previous energy supplier (including those outside the ‘big six’ and without any time constraints on the date of switching). Grossed up figures are also calculated based on respondents’ answers to the survey and thus their own estimate of how much credit they have reclaimed. Applying the average estimated amount reclaimed by those who did reclaim credit to the proportion of energy switchers who are unsure if their account was closed in credit, figures were then grossed up to the total number of households in the UK (please refer to footnote 1).
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