Shell Plc’s UK consumer gas, electricity and broadband operations business will pay 536,970 pounds ($635,181) to customers it has overcharged on its default tariffs, Britain’s energy market regulator Ofgem said on Thursday.
Shell Energy Retail Ltd in March found that it had overcharged 11,275 prepayment customers over three years from January 2019 due to operational errors related to the implementation of its default tariffs.
The amount Britain’s energy suppliers are able to charge customers is limited by Ofgem’s price cap.
The payment by Shell Energy includes a refund of 106,000 pounds to the affected prepayment customer accounts as well as 400,000 pounds to Ofgem’s voluntary consumer redress fund.
Ofgem said it had decided not to take formal enforcement action against Shell Energy as the firm self-reported the issue and had put in place steps to address the failings.
In 2019, Shell Energy had agreed to refund and compensate 12,000 customer accounts it overcharged when the price cap was introduced. ($1 = 0.8454 pounds) (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich and Anil D’Silva)