Energy suppliers criticised for slow payment of refunds

Thousands of consumers have had to wait months or even years to get money back from their energy supplier, said the industry's consumer watchdog today.

Energywatch says it has fought for cash refunds for more than 6,000 customers in the past 12 months, with the average owed being around ?350.

The issue of refunds arises when customers have continually overpaid on their monthly direct debit or when a final bill shows them to have credit.

"This is the worst kind of double standards. If the boot was on the other foot, energy consumers would soon be receiving letters threatening disconnection or court action," said Ann Robinson, chair of energywatch.

"Yet thousands of consumers who have paid for their energy in advance and are merely asking for what they are owed are coming up against a brick wall."

Last month the watchdog released its annual report showing a marked increase in complaints from customers about their energy suppliers. The most significant rise came from customers complaining about accounts and billing, with the total number of complaints hitting 45,546 from 37,075 the year before.

"The answer is simple. When a supplier identifies a credit, it should be refunded immediately or if appropriate they should begin discussions to reduce a monthly direct debit payment," said Robinson. "If there is any delay in the repayment, interest should automatically be added to the sum owed."