/ Home & Energy

Are you waiting on a refund from a defunct energy supplier?

We’ve heard from a number of people awaiting refunds from suppliers who have recently ceased trading. How long should it take to get your money back?

I don’t always remember the exact moment I get an email from my energy supplier, but it’s perhaps appropriate in some way that I received notice my energy supplier had ceased trading right as I turned on the heat for the first time last autumn.

I’m certainly not alone – over the past few months several hundred thousand of other customers have likely received a similar notification. Earlier this year both Green Network Energy and Simplicity Energy closed, affecting some 410,000 customers, and last year also saw the closure of Tonik Energy and Yorkshire Energy.  

Guide: What to do if your energy supplier goes bust

The good news is that my lights didn’t go out while I was transferred to a new supplier, known as a supplier of last resort (SOLR) and chosen by Ofgem. This transfer was pretty straightforward, with the hardest part being having to crawl under the stairs for a meter reading. 

Given I had built up a fair amount of credit with my old supplier, I still had one remaining question:

How long until I got my refund?

Turns out I’m not alone here either. We’ve heard from a number of people awaiting refunds from suppliers who have recently ceased trading. What they’ve been promised doesn’t always measure up to reality:   

I asked Which? energy expert Sarah Ingrams about when people could expect their balance to be refunded. She said:

Exactly how long this takes depends on the information the failed supplier had, so it can be out of the new supplier’s control. Usually it’s the new supplier who will refund your credit or add it to your new energy account.

We asked Ofgem about this, and it said if a customer has not been contacted for several weeks by their new supplier, get in touch and ask when they’ll get their balance back. Ofgem doesn’t have a timetable for returning credit balances in a SOLR situation, but it is closely involved as the new supplier takes on customers to make sure it acts as speedily as possible”

Fortunately for me I was told several weeks later that my refunded credit will shortly be posted to me in the form of a cheque. Unfortunately though, that seems to be taking a bit longer than usual for my area. 

Share your experiences

If you’ve been with a supplier that’s recently ceased trading, we’d be keen to hear about your experience of being moved to a new supplier.

Has your new supplier communicated what’s going on with your supply in a way that works for you?  Have you received a refund for any account credit you had with your old supplier?

What other questions have you had about your transfer that you’d want to know from your new energy supplier?  

Once you moved fully to your new supplier, did you stick with it, or did you use the opportunity to find a better deal elsewhere?  

Tell us about it in the comments. 

Comments

I was £300 in credit with GNE when they stopped trading, but a fair way through a switch to GoTo. Not GNE, EDF or GoTo have been any help to me in getting that credit repaid.

Carole Huff says:
9 May 2021

Phone the energy ombsoman they will take up your case, I had a problem getting money back from my energy supplier and they got it back for me.

We are still in credit with green network energy at Over £380 we were half way through switching as it announced it was ceasing to trade and still waiting on a refund how long does it take to transfer money… Seconds if I was due them money they would want it straight away we should be compensated for the delay absolutely shocking

Wendi says:
9 April 2021

Moved from Yorkshire Energy just before they ceased trading in December. Scottish Power are unable to give me my credit balance as Yorkshire Energy still haven’t produced a final bill. We’re owed about £150 according to my calculations from the final readings. Emailed Yorkshire Energy many times and keep getting fobbed off -Scottish Power cannot do anything either and we’re stuck in the middle. Ofgem have no interest whatsoever so will just have to wait but it’s been 4 months already. We’re fortunate that we can afford to pay our new supplier without this refund but I’m sure others cannot.

Mean Al says:
7 May 2021

Hi Wendi. I’m in exactly the same position here. Fortunately, Yorkshire don’t have as much of my money as they do yours – my credit balance was around £60 at the time I switched away. Like you, I STILL don’t have a final bill from Yorkshire Energy, and of course the Energy Ombudsman isn’t interested. I would like to know if you ever get your refund!

julie bombroff says:
21 April 2021

I have spent months chasing my credit. This is so wrong. My final bill has been available since the end of Feb and they have deducted the final bill amount twice from my credit balance. I have a printed statement showing how much credit I had at the end of Nov, but Scottish Power say maybe there’s a reason they deducted the final amount twice and I have to sort it with Yorkshire Energy, who’s website and phone number don’t work. The administrators Deloitte have an automated email response. I found there details on a blog for Daisy Energy. I emailed the ombudsman and the directors office at Scottish Power. I’ve been complaining to them the last week or so, both by email and phone. They have just phoned to say they’ll pay the difference as a good will gesture. If anyone wants contact details let me know. 6 months of chasing!

I have recently been sent a bill from a solicitor acting on behalf of Tonik energy.
When they went bust I was almost £400 in CREDIT. They are claiming that over a two week period that I used over 24000kwh of gas. This is more than twice the average households annual usage.
I have also had my direct debit amount increased three fold by Scottish Power because they are basing their charges on what Tonik have provided them.
I have explained to the solicitors that the meter reader had mistyped the reading and that 6 months on my readings are still much less than they claim but to no avail. They will not send anybody to check the readings for themselves and are stating that if I refuse to pay then I face legal proceedings.
Having informed them of the situation Scottish power in their infinite wisdom have now arrived at the conclusion that if my readings are lower now than when they took over my supply then I must have gone round the meter past zero and back to almost where they were when the takeover happened. About £ 30,000 worth of gas in five months in a 3 bed house.
Fortunately my meter hasn’t got the capability to allow that amount of gas through so I am preparing to argue my corner in court.
Disgraceful.

lisa says:
28 April 2021

5 months since Scottish Power have taken over Yorkshire Energy and they still haven’t credited my account.

peter clements says:
2 May 2021

Was formerly with Yorkshire Energy transferred to Scottish Power on what i consider a high tariff, finally informed i was £117-25 in credit in early march.
Moved from Scottish Power as service very poor and after they informed me after taking dd.for final bill that i would receive credit shortly (APR 7) i am still waiting.

Joe Tuck says:
4 May 2021

Formerly with Yorkshire Energy was £472 in credit …. still waiting for credit refund after 5 months

Lyndsey says:
4 May 2021

I was unaware that Scottish power had taken over my Tonik supply until February (nearly 5 months after Tonik left) their introduction was for a bill that was “estimated” which was over double my yearly usage. Luckily with tonik I had sent monthly pictures of my meter readings so had a steady supply of evidence. After this was dealt with they said it was too late for me to be put onto the tariff made for tonik customers so was automatically put onto a high tariff. To give you an idea with tonik I was paying £43 for gas and electric per month as I am in a one bedroom apartment, scottish are now stinging me for over £127 a month for gas and electric as they think I have £400+ in debt for the 5 months it took them to transition as my supplier. I managed to argue and get that reduced to £300 as a £100 of “good will” from them but with £282 in tonik credit that would be really useful to clear this mess I have been left in!