Shell Energy has claimed millions after taking on customers of collapsed suppliers.
The Telegraph reported that Shell Energy claimed £197 million for costs associated with Ofgem’s Supplier of Last Resort process.
The supplier has taken on an estimated 500,000 new customers from five energy companies that went bust due to soaring electricity and gas prices.
Energy companies that enrol customers of failed suppliers are allowed to reclaim the costs of this procedure in a process that adds these costs to household energy bills.
In December, it was reported that Shell Energy’s loss rose to £102.4 million in 2021 from £83.6 million a year earlier.
UK’s utilities have been hit by fluctuations in energy prices since the end of 2021 – the market volatility led to many bankruptcies, including Bulb, which was put into special administration before being acquired by Octopus.
ELN has contacted Shell Energy and Ofgem for comment – they did not respond before publication.