Shell agrees to compensate 12,000 overcharged customers

Royal Dutch Shell has agreed to compensate roughly 12,000 customers after overcharging on its default tariffs after the UK's new price cap was introduced.

In addition to the £100,736.63 of refunds, Shell's retail energy division will pay an additional £62,000 in compensation to 6,200 customers and £29,000 in compensation to a further 5,600 clients. It will also offer up £200,000 to Ofgem's consumer redress fund to help support vulnerable customers - equating to a total payment of £390,000.

Consumer watchdog Ofgem decided not to take formal enforcement action against Shell Energy after taking into account the steps the energy giant has taken to address its failings.

Ofgem vowed to continue closely monitoring all suppliers' approach to the implementation of the cap and hold firms to account "if they do not meet their obligations".

As of 1030 BST, Shell shares had ticked up 0.14% to 2,513.50p.