Octopus Energy has purchased Shell’s retail energy business, taking on an additional 2 million customers across energy and broadband.
The deal, which takes the number of UK customers Octopus serves to almost 6.5 million, includes 1.4 million UK household energy customers and 500,000 broadband customers. The company is also taking over Shell’s German retail business.
The deal is expected to complete in Q4 2023 following regulatory approval.
Octopus said as part of the agreement, the two companies are exploring “a potential international partnership”.
“The companies are planning to bring the best possible experience to their EV charging customers, including for Shell Recharge and Octopus Electroverse subscribers. Options will be explored for possible joint promotions, brand activations and other activities across the EV value chain,” it explained.
It comes just months after Octopus completed onboarding 1.5 million customers from Bulb, following the latter entering the government’s Special Administration Regime as a result of the energy crisis.
Greg Jackson, chief executive 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.”
Shell announced it was considering the future of its UK domestic retail business in January, five years after entering the market with the purchase of First Utility.
When it announced it had agreed to buy First Utility in December 2017, Shell said its motivation for the deal was expanding its energy supply business from commercial and industrial customers into the residential sector, which would allow it to bring its products and services to more customers.
In 2019 the company rebranded First Utility as Shell Energy Retail.
Since then it took on more than half a million customers following the wave of supplier failures that came at the onset of the energy crisis in late 2021.