Shell Energy Retail pays out to overcharged customers
First Utility was rebranded in March
Shell Energy Retail has agreed to pay £390,000 in compensation and redress after overcharging 8,800 customers.
Electricity and gas customers paid £100,736.63 collectively above the price cap which was introduced on 1 January. Shell will also pay £200,000 to Ofgem’s consumer redress fund.
The company, trading under First Utility at the time of the breach, has agreed to refund the affected customers by re-crediting 12,000 accounts and will pay additional compensation to all 8,800 affected customers.
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 closely monitors all suppliers’ approach to the implementation of the cap and will continue to hold suppliers to account if they do not meet their obligations.
Firstly Utility was acquired in March 2018 and rebranded Shell Energy Retail Limited in March this year.