Shell, the oil and gas giant, has agreed to sell its home energy business in the UK and Germany to Octopus Energy, a British energy supplier, for an undisclosed sum. The deal is part of a broader agreement in which the two companies will explore a partnership on electric vehicle (EV) charging.
Shell’s home energy business provides gas, power and broadband services to about two million customers under the Shell Energy brand. The deal is expected to be completed in the fourth quarter of 2023, subject to regulatory approval.
Shell said the deal follows its announcement during its Capital Markets Day to divest its home energy retail business in Europe. Shell’s executive vice-president Steve Hill said the company was focusing on projects and countries where it could deliver the most value.
Octopus Energy said the acquisition will likely make it the second-largest home energy supplier in Britain with around 6.5 million customers, second only to Centrica’s British Gas. Octopus Energy also said it would take over Shell’s broadband services for 500,000 customers.
Octopus Energy last year acquired rival Bulb, which was one of the largest energy suppliers to collapse in 2021 due to soaring wholesale gas and electricity prices. Octopus Energy said Shell Energy Retail customers should sit tight for now and they will be contacted at the time of completion of the deal.
Shell and Octopus Energy have also signed a memorandum of understanding to explore a potential international partnership over EV charging, including for Shell Recharge subscribers. Shell Recharge is Shell’s network of EV charging stations across Europe.
The deal is part of Shell’s strategy to reduce its carbon footprint and transition to cleaner energy sources. Shell aims to become a net-zero emissions energy business by 2050 or sooner. Shell also plans to invest $2-$3 billion per year in renewable and low-carbon energy sources.
