01 September 2023 , 12:04
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Shell has agreed to sell its home energy business with two million customers to Octopus Energy.
The deal will see Shell Energy in the UK and Germany, which provide domestic gas, power and broadband services, moved over to the rival firm. It means Octopus will have nearly 6.5 million household customers in the UK.
Octopus has told Shell Energy customers to “sit tight for now” and has said there will be no disruption to energy supply during the takeover. The deal is subject to regulatory approval and is expected to be completed in the last three months of 2023.
Customer credit balances will be protected and will automatically get transferred to their new account with Octopus, along with existing direct debits. You should keep paying your direct debit as normal.
The news comes after Shell confirmed it was looking for a buyer back in June this year. Meanwhile, Octopus recently completed the transfer of 1.5 million Bulb customers in just six months.
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Greg Jackson, CEO and founder of Octopus Energy Group, said: “Following a stringent process, we are pleased to be acquiring Shell Energy Retail in the UK and Germany. Octopus has proven that it delivers game-changing service whilst innovating and investing relentlessly towards a cheaper cleaner energy system. Our commitment to customers is paramount and we will do whatever it takes to deliver the Octopus promise when we welcome these new customers too.”
Natalie Mathie, energy expert at Uswitch.com, said: “We’ve known that Shell Energy has been planning to exit the UK retail energy market for a while, so it will be good for customers to have more certainty about what might happen next.
“Despite today’s announcement, it could take some time until the deal is approved and completed, although Shell Energy believes it could happen later this year. Until any takeover is done and dusted, the business will operate as normal. Customers can be reassured that whatever happens, their credit balances will be protected and no action is required from them.”