Octopus Energy has confirmed they will take over supplying 1.5 million Shell Energy customers as they purchase the retailer’s home energy businesses in the UK and Germany.
Shell announced that they were planning to sell their domestic energy and broadband divisions in June of this year. While Shell’s sale of the business might show a lack of confidence in the domestic energy market, the quick sale to Octopus means there is at least one large UK supplier keen to take on new customers.
For now, Shell customers are being advised to continue as normal, with the deal expected to be completed this winter.
Why is Shell Energy for sale?
Shell announced that they would be selling their home energy and broadband divisions in June. The news came as something of a surprise considering that wholesale energy prices have stabilised significantly after the chaos of the last two years.
In 2021 alone 29 UK energy suppliers closed. While some believe that the energy crisis is ending and we will see a return of stable energy prices, others are expecting more sudden jumps in wholesale energy prices on the way.
For Shell, the decision came at the end of a five-month review of their domestic energy operations in the UK, Germany and the Netherlands. Following the investigation, Shell determined that selling their home energy and broadband divisions was the best move for the company as a whole.
Who are Octopus Energy?
Octopus Energy is a relatively new energy supplier, but they’ve quickly grown into the UK’s second-largest supplier. Founded in 2015, Octopus prides itself on a customer-and-environment-friendly approach to energy supply. Octopus has been a Which? recommended energy supplier every year since 2018, and are a ‘Good Shopping Guide’ accredited ethical supplier.
After the purchase of Shell is complete, and following their recent acquisition of Bulb Energy, Octopus will supply energy to 6.5 million customers. For comparison, British Gas, the UK’s largest energy supplier, provides gas and electricity to around 9 million customers.
The rapid growth of Octopus has shown that a customer-centric and green energy company model such as the ones used by Octopus and Rebel Energy can be massively successful while still providing customers with a best-in-class service.
What does this mean for Shell Energy and Shell broadband customers?
There will be no change at all at first for existing Shell Energy and broadband customers.
The sale to Octopus still needs regulatory approval and is expected to be completed towards the end of the year. Octopus will contact customers directly when the sale is completed.
When those customers are transferred to Octopus their service will continue uninterrupted. Any credit on their account will be carried forward, and their direct debits will remain the same.
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