Energy firms 'slow' on refunds

energywatch says complacent firms should pay interest to customers

More than 800 people in the North West are forced to wait months for refunds on their energy bills, says a consumer watchdog.

On average each of the 835 customers in the region who are owed money, are waiting to receive up to £350, according to energywatch.

The have normally overpaid it on direct debit or find out they are in credit when they ask for final bill.

However, energy companies adopt what energywatch describes as a "go slow" in returning the money to them, and instead should be paying interest on the amount they owe if it is not paid promptly.

Energywatch North West director David Sidebottom said: "Energy companies are behaving like a magpie on a hoarding spree.

"I dread to think how long some consumers would have waited if energywatch had not intervened to free the cash stash from the energy giants."

'Immediate refunds'

He further criticised the firms because of their eagerness to "send in the bailiffs or disconnect you if you owe them money."

Energywatch North West said it has helped resolve over 800 complaints from consumers trying to get their money back from suppliers.

The watchdog is concerned however the true number of customers waiting for refunds is even higher, since not all report their case to them.

"The power companies should put as much effort into identifying and immediately refunding credits as they do sending the bailiffs around for sometimes stupidly small debts," said Mr Sidebottom.

"If there is any delay in the repayment, interest should automatically be added to the sum owed."