Major energy supplier with over 1million customers puts itself up for sale – what it means for you
A MAJOR energy supplier with more than one million customers is up for sale.
Shell has confirmed that it’s looking for a buyer for its domestic energy supplier Shell Energy.
But nothing will change for customers during the sales process and it’s important to note that the company is not going bust.
The 1.4million customers who have gas and electricity tariffs with the firm will continue to receive their services as normal.
The firm also provides broadband to around 500,000 customers and nothing will change for these customers during the sale process.
Shell Energy currently employs roughly 2,000 people in the UK.
The brand expects to complete a deal in the coming months but any buyout would be subject to usual regulatory approval.
When ownership of an energy supplier changes, customers are never left without energy and their services remain unaffected.
Affected customers are usually given several months’ notice before their accounts are transferred over to the new supplier.
In a statement, Shell said: “We are committed to supporting both customers and staff and protecting customer interests during this period, and to ensuring a seamless transfer to a buyer capable of delivering on its obligations, including our intent to maximise employment.”
Shell Energy business customers will be unaffected by the sale and the firm will continue providing energy to non-domestic customers.
It was previously reported in March that Ovo Energy was plotting a takeover of Shell Energy.
In January, Shell said it was looking at options for the future of its UK energy supply business.
It came just five years after the home energy business was born out of Shell’s acquisition of First Utility in 2018.
The last major supplier to place its domestic arm up for sale was SSE back in 2019.
SSE Energy Services which provided gas and electricity to 3.5million households was acquired by Ovo Energy in January 2020.
Since SSE disbanded its domestic energy arm its sole focus has been on power generation through the operation of several UK power stations.
But the transfer of its domestic arm to Ovo meant that it was catapulted into the “Big Six”.
Ovo Energy now supplies 4.5million households with gas and electricity across the UK.
But the SSE arm still operates separately from its parent and all remaining customers are expected to move over to Ovo Energy by January 2024.
In February 2023, Marks and Spencer announced that its M&S Energy brand would close in April.
It had over 60,000 customers and while their energy was supplied by Octopus Energy, it offered unique tariffs which were only available to those who were M&S Energy customers.
All M&S Energy customers switched to become Octopus Energy customers on April 1.