Shell Energy is the latest firm to fall foul of the UK’s Ofcom regulations for not informing out-of-contract customers of better tariffs. Why have they come under fire, and what can other telcos learn from their mistakes?
Ofcom has fined the broadband wing of Shell Energy to the tune of £1.4 million for – yep, you guessed it – not informing phone and broadband customers of the end of their contracts or of new, cheaper deals.
According to rules introduced in February 2020 to tackle the “loyalty penalty”, telecoms firms are obliged to notify customers when their contract period is coming to an end, and whether they could be on a better tariff with the same provider. By Ofcom’s own findings, out-of-contract customers could save an average of £100 a year by renegotiating with their provider.
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.
