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Thousands of Shell Energy prepayment meter users to be refunded after being overcharged – here’s what you need to know

Thousands of Shell Energy prepayment meter customers on standard variable tariffs will receive a refund of just under a tenner on average after being overcharged for the past three years. In total, 11,275 customers will receive a share of £136,970. 

Below we explain below what went wrong and how you'll get the money back. If you're struggling with your bills, check out our Energy help guide and see our energy grants round-up, which includes support for Shell Energy customers. 

Shell Energy failed to apply the price cap to thousands of users' tariffs

Tariff updates should have been sent to prepayment meters to alter customers' rates in response to price cap changes, ensuring users did not pay more than the energy regulator's price cap.

However, because of "operational issues", not all Shell Energy meters were updated, which resulted in 11,275 customers paying more than they should have.

Energy regulator Ofgem said Shell Energy admitted the error, which dates back to January 2019, in March 2022.

Affected customers will be refunded automatically and do not need to apply

In addition to the £106,000 in overpayments being refunded to affected customers, £30,970 in goodwill payments will also be divvied up between these users. The average amount being refunded is £9.40, plus compensation. 

Affected Shell Energy customers will be refunded automatically via bank transfer and do not need to apply, although make sure your bank details on your Shell Energy account are up to date. To do this, log into your Shell Energy account, click 'my account', 'my details' and then 'update bank details'. 

Ofgem said Shell Energy will have to refund customers in a "reasonable amount of time" with the majority being refunded within a few weeks. 

We're checking if this includes those impacted who've since left Shell Energy and we'll update this story when we know more. 

If you don't receive a refund but think you might be eligible, contact Shell Energy. You can do this either by going to the online chat on Shell's website, emailing Shell by clicking this link here or by calling 0330 094 5800.

Shell Energy will also pay £400,000 into Ofgem's consumer redress fund, which is designed to help vulnerable customers of all suppliers.  

What does Ofgem say?

Neil Lawrence, director of retail at Ofgem 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. Overcharging by suppliers can cause additional and unnecessary stress and worry at what is already a very challenging time for consumers across the UK."

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