11 September 2023 , 10:49
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Martin Lewis has shared a warning to Shell Energy customers who will be moving over to Octopus Energy.
It was announced earlier this month that Shell Energy in the UK and Germany, which provides domestic gas, power and broadband services, was going to be bought by Octopus. Ofgem and the Competition and Markets Authority (CMA) still need to approve the deal, but if it is going to go ahead it looks set to be completed in the last three months of this year.
In the latest episode of the Martin Lewis Podcast, the Money Saving Expert founder warned that Shell Energy customers on a variable energy contract could see prices change.
Martin explained: “There shouldn’t be any disruption to your service when you’re transferred over and I shouldn’t think there would be any change to your contract if you’re on a fixed tight deal - whether it’s broadband or energy. If you’re on a variable contract there is a possibility the price will change though having said that, Octopus has generally been known as one of the best customer service providers out there and I suspect what it will want to do is try to keep your business once you move across."
“So, if it’s anything like previous transitions I’ve seen in the energy market, most people who were with another firm and then moved to Octopus tend to be happier about it.”
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Martin Lewis' MSE website explained that for now, there would be "no material change for Shell's customers". The terms and conditions of their contracts remained the same and they can still manage their account, and ask for help in the usual way. Customers should also continue to pay their energy bills in the same was as before,
Under Ofgem's rules, households will never be left without an energy supply during a change of supplier. When the sale was announced, Octopus told Shell Energy customers to “sit tight for now” and reiterated that there would be no disruption to energy supply during the takeover. Once the deal is completed, Shell customer credit balances will be protected and will automatically get transferred to their new account with Octopus, along with existing direct debits.
However, the situation is less certain for broadband customers as Octopus doesn't currently have a broadband business and hasn't offered these services in the past. Under Ofcom rules for broadband, any loss of service that occurs during a switch between suppliers should not be longer than one working day and providers must compensate you if things go wrong.
If you are a Shell broadband customer and you are out of contract, you can leave penalty-free at any point. However, the MSE website says that it is currently "unclear" how many Shell broadband customers are in contract.
According to MSE, if you're in contract, you can't switch fee-free, though rules from broadband regulator Ofcom say that if your broadband provider changes your contract terms and the change does not benefit you, you have the right to leave penalty-free. You must also be given at least one month's notice of any changes.