Shell Energy purchased by Octopus

Octopus Energy is on track to ascend as the UK’s second-largest home energy supplier, following an agreement to purchase Shell’s domestic electricity and gas operations in the UK.

Octopus Energy is gearing up to become the UK’s second-largest residential energy supplier by taking over Shell’s domestic electricity and gas unit, expanding its customer base significantly.

The acquisition will result in Octopus providing energy services to 6.5 million homes, incorporating the 1.4 million customers currently with Shell Energy.

Octopus Energy’s recent growth has been largely fuelled by taking on customers from defunct energy companies, such as Avro and Bulb.

Industry analysts emphasize the importance of a competitive market for sustaining high levels of service quality and affordable pricing.

Natalie Mathie, an energy specialist at Uswitch, voiced concern over Shell Energy’s exit, citing its position as a viable competitor to larger market players.

Mathie remarked, “It’s unfortunate that Shell Energy is leaving the market; they’ve been a significant contender against larger energy companies. Maintaining robust competition is crucial for the industry’s long-term health, ensuring that providers continue to offer excellent service and competitive prices.”

Emily Seymour, Energy Editor at Which?, reassured Shell Energy customers saying, “Those currently with Shell Energy may have concerns about what the transition to a new provider means for them. There’s no cause for alarm—your utilities won’t be disrupted and your existing credit is secure. Typically, the customer transition process lasts a few weeks, and you’ll be informed by your new provider about the details of your new plan, payment arrangements, and any credit refunds.”

Consumers are encouraged to record meter readings, monitor any existing credit, and refrain from changing suppliers during the switch to ensure a seamless transition and proper credit settlement.