Shell divests home energy business in UK and Germany
Shell has officially agreed to sell its home energy business in the United Kingdom and Germany to Octopus Energy. The businesses, which operate under the Shell Energy brand, provide domestic gas, power, and broadband services to approximately two million customers.
This transaction, with an effective date of September 1, 2023, is anticipated to conclude in the fourth quarter of 2023, pending regulatory approval. Octopus Energy, a leading energy retail company, operates in 15 countries and is known for its innovative energy solutions for residential customers.
Existing tariffs and offers for all home energy customers will remain unchanged, ensuring continued access to 100% renewable power. Both companies have emphasised that customer service will remain uninterrupted. Following regulatory approval and the completion of the deal, a smooth transition of the businesses and brand from Shell Energy to Octopus will be ensured.
Steve Hill, executive vice-president of Shell Energy, commented on the divestment. “This agreement aligns with our announcement during our Capital Markets Day to divest our home energy retail business in Europe,” he said. “We are prioritising projects and markets where we can deliver the most value. Our collaboration with Octopus will ensure a seamless transition and uphold our commitment to customer service.”
In addition to the sale, Shell and Octopus have signed a memorandum of understanding to explore potential international partnerships, focusing on enhancing the experience for their electric vehicle (EV) charging customers. This includes potential joint promotions, brand activations, and collaboration on out-of-home charging across the EV value chain. Shell aims to expand its global charging network to around 200,000 public charging points by 2030.
Following the sale’s completion, the ownership of the businesses will transfer to Octopus. However, existing Shell Energy customers will remain under the Shell brand for several months during the migration to the Octopus brand.