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12,000 Shell Energy Retail Customers Overcharged

After overcharging around 12,000 default tariff customers, Shell Energy Retail Limited is set to make a total payment of £390,000 in refunds, compensation and a contribution to Ofgem’s voluntary consumer redress fund.

On 1 January 2019, Ofgem introduced the price tariff to protect customers on poor value default tariffs but between January and March 2019, Shell Energy Retail were found to be overcharging some of their gas and electric customers.

Operating as First Utility at the time, Shell Energy Retail has agreed to refund all customers affected by crediting their accounts and will also provide compensation.

Around 6,200 customers were paying above the price cap level for their gas and/or electricity and will be refunded a total of £62,000.

Meanwhile, a further 5,600 customers had to wait for the price of their energy to be reduced below the price cap and ended up paying more than the cap for too long. Shell Energy Retail will be paying these customers a total of £29,000 in compensation.

An additional payment of £200,000 will be paid into the Ofgem voluntary redress fund which has been set up to support vulnerable customers.

As Shell Energy Retail has addressed all wrongdoing, Ofgem will not be taking formal enforcement action.

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