Octopus agrees a deal to acquire 2 million Shell Energy customers to become the second largest supplier in the UK
Octopus agrees a deal to acquire 2 million Shell Energy customers to become the second largest supplier in the UK
Octopus today announced that it has signed an agreement to acquire Shell Energy in the UK and Germany, bringing in 2 million new energy and broadband customers.
If approved, the challenger energy supplier’s total customer base would reach 6.5 million, making it Britain’s second largest supplier.
The deal would transfer 1.4 million Shell Energy to Octopus Energy, along with 500,000 broadband customers.
Octopus Energy will take on an additional 2 million customers following a deal with Shell Energy
It comes just a few months after Octopus finalized the deal to bring 1.5 million Bulb customers to its platform after the green energy company filed for bankruptcy in November 2021.
At its peak, Bulb was Britain’s seventh largest energy supplier, but fell to the government after smaller companies failed to keep afloat.
Greg Jackson, CEO and founder of Octopus Energy said: ‘Following a rigorous process, we are pleased to have acquired Shell Energy Retail in the UK and Germany.
“Octopus has proven to deliver pioneering services while relentlessly innovating and investing toward a cheaper, cleaner energy system.
“Our commitment to customers is paramount and we will do everything we can to deliver on the Octopus promise as we welcome these new customers.”
Shell announced plans to sell its household energy business in early June following the recent market turmoil.
The oil and gas giant had decided to sell the unit after a five-month evaluation.
The last major energy company to put its domestic arm up for sale was SSE in 2019, which supplied energy to more than 3 million households.
It was acquired by Ovo Energy in 2020.
What should you do if you are a Shell Energy customer?
The deal is expected to close in the last three months of 2023 following regulatory approval. Shell customers have been advised to take it easy.
Over time, they will be transferred to their new account with Octopus, along with their existing direct debits, and all customer funds will be protected.
Natalie Mathie, energy expert at Uswitch, said: ‘Until an acquisition is made and dusted off, the business will continue to operate normally.
“Customers can rest assured that whatever happens, their assets will be protected and no action will be required from them.
Shell Energy’s decision to exit the market is disappointing as it has been a well-backed challenger to the larger energy suppliers.
‘It is important that there is strong competition between companies in the longer term, so that suppliers cannot rest on their laurels when it comes to quality of service and price.’