............. compensation after watchdog tells it to cough up £390k due to overcharging

• Shell Energy will refund £100,736 to all 12,000 accounts affected
• 6,200 customer accounts that paid above the cap level will receive £10 each
• 5,600 accounts which saw a delay in their bills being reduced will get £5 each
• Shell Energy will also pay £200,000 into Ofgem's voluntary redress fund

Shell Energy, previously known as First Utility, has been ordered to refund and compensate 12,000 customer accounts after it overcharged them by more than £100,000 in total. Energy regulator Ofgem said these Shell Energy customers on default tariffs were charged above the price cap introduced at the start of this year, and ordered the supplier to pay £390,000. Shell Energy, which supplies more than 700,000 UK households, will refund £100,736 to across 12,000 accounts affected – or an average of about £8 per account. On top of that, it will compensate around 6,200 customer accounts that paid above the cap level for their energy bills a total of £62,000 – or £10 per account. The remaining 5,600 customer accounts which experienced a delay in their energy bills being reduced under the price cap will receive a compensation of £5 each – for a total of £29,000.Shell Energy will also pay £200,000 into Ofgem's voluntary redress fund to help support vulnerable customers. The move comes as Ofgem has been monitoring firms about their compliance with the price cap that came into force on 1 January this year. The temporary default tariff cap was introduced to protect all customers on standard variable and default energy tariffs from paying poor-value rates.

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