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Revelations that energy firms have been holding cash from closed accounts described as 'appalling'

28 Chwefror 2014

As Ofgem calls on energy companies to take action over £400 million they hold from customer's closed accounts Citizens Advice and Consumer Futures say suppliers should return the money as soon as possible.

Citizens Advice Chief Executive Gillian Guy said:

“It's appalling that firms have been sitting on hundreds of millions of pounds of customers' money, making little effort to return it. Hard-pressed households who are struggling to get by and businesses feeling the pressure on their finances would benefit from the money being in their pockets not their energy company's bank account.

“Suppliers do not hold the purse strings of households in this country. If they have people's money they should return it as soon as possible. Where suppliers are no longer able to refund people the money should go towards helping customers. The big six energy firms need to take immediate action to get money back in people's pockets and take steps to stop this happening again.

“Today's revelation is further evidence of lack of transparency in the energy industry. Consumers' trust in energy firms cannot be regained until suppliers are up-front with customers and it is clear how the market operates.

“People can take steps to avoid money sitting in their energy company's bank account by providing forwarding addresses if they move.“

As Citizens Advice welcomes Consumer Futures to the organisation, Consumer Futures Director Adam Scorer joins the Citizens Advice Executive Board on 1st April 2014.  Adam is available for interviews representing Citizens Advice and Consumer Futures.

Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.