Shell Energy has been fined £1.4 million for breaching Ofcom rules after the company failed to notify almost 73,000 customers know their contracts were coming to a close.
Ofgem said that Shell Energy committed a “serious breach of our consumer protection rules,” and the company said they are “extremely disappointed” for letting their customers down.
“Every day, tens of thousands of customers come to the end of their phone or broadband contract and can make significant savings by switching provider or signing up to a better deal,” said Suzanne Cater, enforcement director at Ofcom.
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“That’s why our rules, which demand that providers prompt customers with the information they need to take action, are so important.
“Shell Energy’s failings represent a serious breach of our consumer protection rules and they must now pay the price. This sends a message to the whole industry that we won’t hesitate to step in on behalf of customers if they don’t play by the book.”
Shell Energy Broadband said: “Transparency and clarity for our customers is something we believe in strongly so we were extremely disappointed to have let some customers down in the past by not providing them with the notifications and accuracy we should have.
“As soon as we became aware of the errors we self-reported to Ofcom, rectified the issues, compensated customers and supported Ofcom in its investigation. We apologise to any customer who we let down.”