Shell has announced that it will sell its home energy business in the UK and Germany to Octopus Energy Group. This move comes as both companies look to explore a partnership in electric vehicle (EV) charging. The British energy retail sector has faced challenges in recent years due to increasing wholesale costs and price caps set by regulator Ofgem. Shell Executive Vice-President Steve Hill stated that this divestment aligns with the company’s focus on projects and countries where it can deliver the most value.
Shell Energy Retail Limited in the UK and Shell Energy Retail GmbH in Germany currently serve approximately two million customers, providing domestic gas, power, and broadband services under the Shell Energy brand. Octopus Energy Group’s acquisition of Shell’s home energy business is expected to make them the second-largest home energy supplier in Britain, with around 6.5 million customers, just behind Centrica’s British Gas.
The completion of the acquisition is anticipated in the fourth quarter of 2023, pending regulatory approval. Octopus Energy Group has stated that current Shell Energy Retail customers should remain patient and will be contacted at the appropriate time.
The financial details of the deal have not been disclosed, but sources estimate its value to be between $50-100 million. In addition to the acquisition, Shell and Octopus have signed a memorandum of understanding to explore a potential international partnership in EV charging, specifically for Shell Recharge subscribers.