Caroline Flint MP, Labour’s Shadow Energy and Climate Change Secretary, commenting on analysis from Ofgem suggesting that energy suppliers hold £400 million in credit from closed accounts, said:

“This is just the latest example of an energy market that is not working for Britain’s households and businesses. There is no excuse for these companies to hoard their customers’ cash - if people are paying by direct debit their supplier will have their bank details and should be able to refund any balance when the account closes.

"Ofgem are right to challenge the energy companies over the huge balances they’ve accumulated from closed accounts, although people might wonder why this problem was allowed to go unchecked for so long in the first place. The regulator must now ensure that this money is promptly returned to customers.

“The next Labour government will undertake the biggest overhaul of our energy market since privatisation, reforming the market so that it works in the interest of Britain’s households and businesses.  Our plans will break up the big energy companies, put an end to their secret deals and make tariffs simpler and fairer. And until these reforms kick in, we will put a stop to unfair price rises by freezing energy bills until 2017, saving the average household £120.”

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