Shell Energy - Final bill overcharge warning

Saver1456

This is appalling behaviour by Shell to continue to defend themselves in this way. The 20 (or in their case 60) day rule only applies when prices have gone up, not down as in this case. If you read the relevant supplier licence condition it’s clear about that.  They really need to get their management of this issue corrected. 

FollowerOfMartin

Thank you to everyone who has added their experience to this thread.  It is good to see that others are finding the information from the MSE community on this thread useful.

There does seem to be a pattern to how Shell are treating customers.  Hence I agree with saver1456 this is a management issue. 

Below is an outline of the stages of the process I have been through so far.  If anyone has experienced different stages in the process or gone further please add your experience to the thread.

1.       Shell overcharge any domestic customer on their standard variable tariff leaving between October 1st and 30th November 2023.  Shell became part of Octopus on the 1st December.  It is also more than 60 days after the price change so even applying their bogus justification customers leaving should not be overcharged in the same way. 

2.       A customer contacts customer service only after they notice the overcharge.  Shell claim that the Flexible 11 tariff has been correctly applied to any customer leaving within 60 days of the price capped standard variable tariff price change.  Shell claim that this is in their terms and conditions without specifying exactly where.  

• When I phoned customer service on 28/12/23 this is what they claimed.

3.       If a customer still insists that they want Shell to calculate the difference between the two tariffs they will.  Then they offer to make a payment ‘as a Gesture of Goodwill’ that coincidently happens to be the same as the calculated difference.  

• Despite promising to calculate the difference on the call on 28/12/23 they were suddenly unable to do so in the email just after the call.  The next day however, after I insisted in my reply sent to the complaints email they sent a calculation of the difference and offered to pay it with the refund of the rest of my credit balance.  I am still waiting for the refund of the overcharge.

4.       A customer accepts Shell's offer of a refund as Shell asks them to do before a payment can be actioned.

• I did this on 29/11 but with outstanding questions about the justification for how Shell could charge higher rates than the price cap for the period 1st October to 16th November.

5.       Sometime later Shell inform the customer they will make the payment in 10 working days and close the complaint.  If there are any outstanding questions about the justification for using the Flexible 11 tariff Shell are likely to once again give an excuse you have already heard.

• The email I received on 2/12 stated, “The final bill has used the tariff Flexible 11 as per the terms and conditions in them and in the tariff agreement.”  Once again Shell failed to quote or specify which terms and conditions they were referring to. They also added a definition of the price cap that was imprecise and confusing, “The price cap is set to the average home spend, not the maximum of it. The price cap should represent the annual usage but i have also attached the median numbers here.”   The median numbers they showed were the median kWh for a Low, Medium and High usage domestic customer.  Totally irrelevant to my outstanding question. 

6.       If the customer insists that the refund is not a ‘Goodwill’ payment and persists with questions on their justification Shell will likely offer a new excuse.

•  On 6/12 Shell wrote that they were going to pay a refund with the following qualification, “as a Gesture of Goodwill to close the complaint as the tariff was applied correctly and we did charged you to the Ofgem rules (to the Flex 11 instead of Flex 12).”  Note they are now using OFGEM rules as their justification.  Is this an admission that Shell’s terms and conditions they previously relied on don’t exist?  These were exactly the same OFGEM rules highlighted by kamkop, and still equally irrelevant.  Shell did not quote the rules just that I could find them on the OFGEM site.  The detail of Shell’s new excuse to me was, “If the customer initiated loss before the tariff expires or within 30 calendar days of the tariff expiring, as long as the customer has left within 60 days of the variable tariff expiring we must leave the customer on the original variable tariff until the supply end date (SED).  This falls in line with Supplier License Condition 23.6 and 24.9.  You can contact Ofgem for the full Supplier License Condition if you want to look further into it.”

7.       If the customer still insists on legitimate justification for the overcharge and insists the refund is to repay an overcharge I’m not sure what happens next as I’m suck at this point now. 

• In reply my reply on 6/12 I presented my reasons why I do not believe the sections of the Supplier License agreement apply.  To resolve my complaint I requested Shell pay the refund and send me a written admission this was a refund for an amount overcharged on my account.  I’m still waiting for a reply.  My analysis of the sections they specified in their excuse was as follows:

                i.      Section 23.6 refers to an increase in the charges for Electricity, "The licensee must treat the increase in the Charges for the Supply of Electricity". The charges per kWh for Electricity were lower in the Flexible 12 tariff than in the Flexible 11 tariff.  So how does section 23.6 justify applying the higher Flexible 11 electricity charges to a lower Flexible 12 period?  I can find no mention of a change in gas prices in this section?

                ii.      Section 24.9 refers to fixed term tariffs, "In relation to each Fixed Term Supply Contract".  The Flexible 12 and 11 are the price capped standard variable tariffs for the relevant periods.  How is either tariff a 'Fixed Term Supply Contract'?

In summary Shell have overcharged leaving customers.  Shell then obstruct, obfuscate and delay legitimate claims from customers for repayment.

Good luck to anyone stuck in this process and well done to anyone who has received a refund from Shell in their bank account.   For anyone who has received a refund did you have to accept it as a ‘Goodwill’ payment and close your complaint first?

I do not believe Shell should be allowed to get away with overcharging in this way.  Moreover, I do not believe that Shell should only pay a refund after a customer has noticed the overcharge and argued with Shell for as long as it takes to get it paid.  I believe that Shell should admit to their error and refund all the affected customers the overcharged amount automatically.  This seems like a just outcome to me but perhaps beyond what is possible?  In the meantime it’s good to see that other people are claiming their refunds from Shell.  Spread the word to anyone you know that may be in the same situation.

amsterdamgroove

Sadly, this has happened to me also (Shell Energy customer in Cambridge). 
I switched to Octopus Energy on the 14th of November 2023. 
Shell Energy sent me the final bill on the 24th of November. In the section "Cancelled bills" of the document they say they are crediting bills from 04 September to 14 November. They then re-billed me for this period (71 days) using the same rate for the entirety of the 71 days (as well as standing charge).

In their email from 11 September they say that the price of my energy is changing from Sunday 1 October and I'll be on their flexible tariff called Flexible 12 Direct Debit ebill.

Thy also wrote: If you decide to change supplier

You can switch without incurring any exit fees. You just need to make sure you’ve paid any outstanding balance to avoid your switch being cancelled.†

If you switch supplier within 20 working days of your new rates coming into effect, you’ll be charged according to your current prices until your switch is complete.

It’s worth remembering that switching supplier can take approximately three wee‍ks if you’ve not opted for faster switching.

Are there any more successful complaints lately?

I too think that refunding only those who noticed this mess is not good enough. I wonder if it is worth complaining to the regulator after a successful refund (is this allowed at all?)?

superkoopauk

Great summary FollowerOfMartin

You are right that SLC 23.6 only applies when the price is going up (there is an equivalent one for gas but might be numbered differently)

This does seem to be a systemic failing that should be self reported by Shell to Ofgem

amsterdamgroove

I'm not sure what to write in my first email to Shell Energy re this re-billing mess. I am a little anxious to ring them up. I tend not to do very well in these phone conversations. I feel a lot more comfortable writing to companies than on the phone. 
I would be grateful for any suggestions on what to write in the first email? Does it need to be very elaborate? Thank you very much

FollowerOfMartin

Hi amsterdamgroove,

I’m not sure exactly what you want to put in your email.  But in addition to giving your account number at Shell I suggest your email covers the following points (please check I have your dates correct).

1.       On my final bill dated 24th of November I was charged the Flexible 11 tariff from 04th September to 14 November 2023.

2.       From 1st October 2023 until 14th November when I left Shell I should have been on the Flexible 12 tariff. 

3.       The Flexible 12 tariff is Shell’s price capped standard variable tariff for the period 1st October to 31st December 2023.

4.       Thus the Flexible 12 tariff is the maximum standard variable tariff that Shell can charge domestic customers in the period 1st October to 31st December 2023.

5.       The Flexible 11 tariff was Shell’s price capped standard variable tariff for the period 1st July to 30th September 2023.

6.       The Flexible 11 tariff is higher than the Flexible 12 tariff.  Thus the Flexible 11 tariff cannot supersede the Flexible 12 tariff in the period 1st October to 31st December 2023.  

7.       Applying the Flexible 11 tariff in the period 1st October to 31st December 2023 exceeds the price cap for this period.

8.       Please recalculate my final bill correctly using the Flexible 12 tariff.

9.       Please refund the overcharged amount caused by the incorrect application of the wrong tariff to the period 1st October to 14th November.

Obviously you might want to change the tone and content, but I think these are the main points of the argument.

Be prepared for initial denial and to have to write a follow up email to get Shell to offer you a refund.  I suggest that if they do try to give you the brush off then just escalate your complaint by writing to their complaint email address.

If you contact customer service first it may be worth putting a time limit on how long you are prepared to wait for a reply before you escalate your complaint.  I have found Shell to be slow in responding to my emails.

Legogirl

Quick update on mine - I was pretty shocked but they called me the next day (and then tried again really quick when I didn't answer the first time!). The agent confirmed my final tariff was wrong, they shouldn't have changed it, and it was being referred back to billing for them to amend and refund. I think she said 2 weeks timescale? Was fairly impressed how quick that was, but will see how quickly it actually gets sorted!

amsterdamgroove

FollowerOfMartin said:

Hi amsterdamgroove,

I’m not sure exactly what you want to put in your email.  But in addition to giving your account number at Shell I suggest your email covers the following points (please check I have your dates correct).

1.       On my final bill dated 24th of November I was charged the Flexible 11 tariff from 04th September to 14 November 2023.

2.       From 1st October 2023 until 14th November when I left Shell I should have been on the Flexible 12 tariff. 

3.       The Flexible 12 tariff is Shell’s price capped standard variable tariff for the period 1st October to 31st December 2023.

4.       Thus the Flexible 12 tariff is the maximum standard variable tariff that Shell can charge domestic customers in the period 1st October to 31st December 2023.

5.       The Flexible 11 tariff was Shell’s price capped standard variable tariff for the period 1st July to 30th September 2023.

6.       The Flexible 11 tariff is higher than the Flexible 12 tariff.  Thus the Flexible 11 tariff cannot supersede the Flexible 12 tariff in the period 1st October to 31st December 2023.  

7.       Applying the Flexible 11 tariff in the period 1st October to 31st December 2023 exceeds the price cap for this period.

8.       Please recalculate my final bill correctly using the Flexible 12 tariff.

9.       Please refund the overcharged amount caused by the incorrect application of the wrong tariff to the period 1st October to 14th November.

Obviously you might want to change the tone and content, but I think these are the main points of the argument.

Be prepared for initial denial and to have to write a follow up email to get Shell to offer you a refund.  I suggest that if they do try to give you the brush off then just escalate your complaint by writing to their complaint email address.

If you contact customer service first it may be worth putting a time limit on how long you are prepared to wait for a reply before you escalate your complaint.  I have found Shell to be slow in responding to my emails.

Thank you very much, FollowerOfMartin! This is priceless information and will definitely help me put together an email. 

Matt17

I've not had final bill from Shell yet. How long after switching does it take for Shell to issue final bill? 

FollowerOfMartin

My last day at Shell was 16th November.  My final bill was dated 27th November and I had an email on 28th November informing me I could view my bill online.