U.K. regulator Ofgem announced that, "Shell Energy Retail Limited is to refund and compensate around 12,000 customer accounts it overcharged on its default tariffs when the price cap was introduced."

Shell Energy Retail was marketing under the brand First Utility at the time of conduct

In addition, Shell Energy Retail will pay £200,000 to Ofgem’s consumer redress fund, equating to a total payment of £390,000.

The price cap for 11 million customers on poor value default tariffs came into force on 1 January 2019.

Ofgem said that, "Ofgem’s price cap monitoring found that between January and March 2019 Shell Energy Retail overcharged around 12,000 electricity and gas customer accounts a sum of £100,736.63 collectively above the level of the price cap."

To rectify its failings Shell Energy Retail has agreed to refund the affected customers by re-crediting their accounts and will pay additional compensation to all affected customers.

"Around 6,200 Shell Energy Retail customer accounts were on tariffs that were not compliant with the price cap, meaning they were paying above than the cap level for their gas and / or electricity. Shell Energy Retail has agreed to refund these customers and pay an additional £62,000 in compensation (£10 per fuel)," Ofgem said

"The remaining 5,600 customer accounts experienced a delay in their energy price being reduced under the price cap after they requested to change to a cheaper means of paying for their energy, which meant they were paying above the cap level for longer than necessary. Shell Energy Retail has agreed to refund these customers and pay £29,000 in compensation (£5 per fuel)," Ofgem said

Shell Energy Retail has agreed to pay an additional £200,000 into Ofgem’s voluntary redress fund to help support vulnerable customers.

"Ofgem has decided not to take formal enforcement action taking into account the steps Shell Energy Retail has taken to address its failings and the redress it has agreed to pay," Ofgem said

The 12,000 customer accounts affected around 8,800 customers.

About 11 million households are protected by the default tariff cap, which came into effect on 1 January 2019. The cap is "temporary," Ofgem said, and applies to tariffs for all customers on standard variable and default energy tariffs.

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Ofgem   U.K.  

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