London Daily

Focus on the big picture.
Friday, Oct 17, 2025

Shell Energy pays out more than £500,000 for price cap overcharging

Shell Energy pays out more than £500,000 for price cap overcharging

Industry regulator Ofgem says the supplier will refund and compensate 11,275 prepayment customers as well as pay into a fund to support vulnerable people for the breach, noting the hardship faced by consumers as energy prices surge.

Shell Energy is to pay out more than half a million pounds for overcharging thousands of households above the permitted price cap.

Industry regulator Ofgem said the supplier would refund and compensate 11,275 prepayment customers as well as pay into a fund to support vulnerable people.

Shell Energy had reported the problem itself after discovering that due to "operational errors" with the implementation of its default tariffs it had overcharged consumers between 2019, when the cap was first introduced, and 2022.

Ofgem said: "The result of this issue was that over 11,000 prepayment customers paid above the rates allowed under the price cap at the time."

In addition to the repayment of the £106,000 overcharged, the firm will make a total of £30,970 in goodwill payments to the customers affected and put £400,000 towards Ofgem's voluntary consumer redress fund.

The overall payment comes to £537,000.

The average amount being refunded to households is £9.40.

News of the payout comes as the energy price cap is set to surge again in response to rocketing wholesale gas prices, deepening the cost of living crisis.

The regulator said: "In determining this redress package, we have considered the additional financial hardship that this issue may have placed on prepayment customers, especially when energy prices are at historic high levels."

It also noted in 2019 Shell Energy agreed to refund and compensate 12,000 customers overcharged when the price cap was introduced and it was trading as First Utility.

Ofgem added: "However, whilst this issue represents a serious matter, taking into account that Shell Energy Retail Limited self-reported the issue and has put in place steps to address the failings, Ofgem has decided not to take formal enforcement action on this occasion.

"Had Shell Energy Retail Limited not self-reported the issue and resolved in a timely manner - the redress package sought would have been considerably higher."

Neil Lawrence, the watchdog's director of retail, said "Ofgem expects suppliers to adhere to the terms of contracts they have with customers, particularly ensuring they pay no more than the level of the price cap.

"Households across Britain are already struggling with rising energy bills and living costs.

"Overcharging by suppliers can cause additional and unnecessary stress and worry at what is already a very challenging time for consumers across the UK.

"Ofgem is always prepared to work with suppliers who have failed to comply with their obligations, but who have self-reported and are determined to put things right, as Shell has done here.

"The contributions Shell has made to the redress fund will help to support vulnerable consumers with their energy bills."

A Shell Energy spokesperson said: "We're sincerely sorry that errors updating our prepayment meter rates resulted in some customers being overcharged for a period of time.

"As soon as we identified the issue we began taking steps to put it right, and self-reported it to Ofgem.

"The overcharge, which averages £9.40 per customer, will be refunded along with a gesture of goodwill.

"We will be writing to customers to let them know."

Newsletter

Related Articles

0:00
0:00
Close
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
DJI Loses Appeal to Remove Pentagon’s ‘Chinese Military Company’ Label
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Australian Prime Minister’s Private Number Exposed Through AI Contact Scraper
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
China’s lesson for the US: it takes more than chips to win the AI race
Australia Faces Demographic Risk as Fertility Falls to Record Low
California County Reinstates Mask Mandate in Health Facilities as Respiratory Illness Risk Rises
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
French Political Turmoil Elevates Marine Le Pen as Rassemblement National Poised for Power
China Unveils Sweeping Rare Earth Export Controls to Shield ‘National Security’
The Davos Set in Decline: Why the World Economic Forum’s Power Must Be Challenged
France: Less Than a Month After His Appointment, the New French Prime Minister Resigns
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Sarah Mullally Becomes First Woman Appointed Archbishop of Canterbury
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
US Prosecutors Gained Legal Approval to Hack Telegram Servers
Macron Faces Intensifying Pressure to Resign or Trigger New Elections Amid France’s Political Turmoil
Standard Chartered Names Roberto Hoornweg as Sole Head of Corporate & Investment Banking
UK Asylum Housing Firm Faces Backlash Over £187 Million Profits and Poor Living Conditions
UK Police Crack Major Gang in Smuggling of up to 40,000 Stolen Phones to China
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Trump Proposes Farm Bailout from Tariff Revenues Amid Backlash from Other Industries
FIFA Accuses Malaysia of Forging Citizenship Documents, Suspends Seven Footballers
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
A Dollar Coin Featuring Trump’s Portrait Expected to Be Issued Next Year
Australia Orders X to Block Murder Videos, Citing Online Safety and Public Exposure
Three Scientists Awarded Nobel Prize in Medicine for Discovery of Immune Self-Tolerance Mechanism
×