The deal will see Shell act as an intermediary for First Utility, and source wholesale electricity and gas from the wholesale market.
Ian McCaig, chief executive of First Utility, said: “Our agreement with Shell provides us with the ideal strategic partner to support our growth and underpin our proposition to offer customers competitive rates in the market.
“Shell’s experience with independent providers in North America and Europe demonstrates the exciting potential that this deal brings.”
Ken Snodgrass, Shell Energy Europe general manager for North West Europe, added: “First Utility excels through its strong customer focus, ambition to accelerate growth, professionalism and fundamental desire to transform energy markets.
“Shell has worked in partnership with North American and European energy independents for over ten years now.
“We are excited to leverage this experience in our support to First Utility in the UK.”