Shell puts household energy business up for sale amid greenwashing row

Shell has put its residential energy business up for sale as it faces a new ‘greenwashing’ spat over its renewable credentials.

The decision to leave the industry after just four years followed a strategic review of the division led by boss Wael Sawan, with the company citing “difficult market conditions.”

Shell Energy was created in 2019 when the company bought household energy supplier First Utility.

Over the next several years, it absorbed several failed rivals and supplied approximately 1.4 million homes.

It provides broadband internet to about half a million households.

A Shell spokesperson said a sale process was “already underway” and the aim was to reach a deal with a buyer “in the coming months”.

In May, it was reported that British suppliers Octopus Energy and Ovo were bidding on the arm with British gas owner Centrica.

The decision came after Britain’s advertising watchdog ruled that Shell had misled consumers about its renewable energy credentials.

In a ruling published today, the Advertising Standards Authority (ASA) said the oil giant breached marketing rules last year when it ran an advertisement praising Shell Energy’s supply of renewable energy in Bristol.

The regulator said the ads “created the overall impression that a significant part of Shell’s business” was low-carbon energy and were therefore “likely to mislead consumers”.

Shell “totally” disagreed with the ASA ruling.

The move by the ASA follows a broader backlash against corporate greenwashing.

Last week, EU regulators uncovered evidence that major banks and other financial institutions had promoted their support for clean energy while continuing to fund fossil fuel extraction and deforestation.