Shell Energy

Last updated

Shell Energy Retail Limited
Industry Utilities
PredecessorFirst Utility
Founded2008
Headquarters
Coventry
,
United Kingdom
Area served
United Kingdom
Key people
Tony Keeling, Chief Executive Officer
Products Gas & electricity
Parent Octopus Energy
Website www.shellenergy.co.uk OOjs UI icon edit-ltr-progressive.svg

Shell Energy Retail Limited is a UK consumer gas, electricity and broadband provider. [1] Formerly a subsidiary of Shell, the business was acquired by Octopus Energy in December 2023.

Contents

The company did not generate electricity, instead purchasing it from international markets. Originally known as First Utility, the company had a relationship with Shell, where it acted as an intermediary to purchase wholesale energy on the global market. [2] Shell reached an agreement to purchase the company in December 2017, and completed the acquisition in February 2018. Rebranding to Shell Energy in the UK took place in March 2019 [3] [4] and the business formed part of Shell's New Energies division.

History

First Utility logo, 2015 First Utility logo.png
First Utility logo, 2015

First Utility was launched in 2008 by co-founders Mark Daeche, Darren Braham and Marcus Citron as a spin-out from First Telecom. [5] [6] In January 2012, the company appointed the former lastminute.com CEO Ian McCaig as its new CEO. [7]

As a small new entrant to the market, the company experimented with new technology.[ citation needed ] The company was the first in the UK to offer smart meters to its residential customers. [8] [9] This also gave the company experience of a large smart meter roll-out programme. [10] [ citation needed ] The company partnered with various other providers including oPower and Google PowerMeter to provide customers with access to usage data. [11]

Ofgem issued a disciplinary order against the company in December 2010 [12] for failing to protect vulnerable customers. [13] [14]

In 2014, the company received criticism for the tone of its energy saving advice. When it was reported that shadow Energy Minister Tom Greatrex had said the advice was an "insult" to millions of people, the company's reported response was that "These tips are meant to provide some advice on how we might reduce our energy usage and absolutely not intended to trivialise the issue of fuel poverty, something we take very seriously." [15]

In January 2014, the company signed a three-year deal to become title sponsors of the Super League. [16]

In September 2014, the firm announced it was considering an initial public offering or outside investment to fund foreign expansion. [17]

In September 2015, the company announced an expansion into Germany to be branded as Shell. [18]

In September 2015, Reuters reported that First Utility had doubled customer numbers in three of the last four years, adding 275,000 customers in the year to July 2015. [19]

Shell reached an agreement to buy the company in December 2017, [20] and the deal was completed on 28 February 2018. [21] In March 2019, the company announced all customers would be supplied with electricity from 100% renewable sources. [22]

First Utility had also offered an Internet access service, bundled with line rental and phone calls, and this was continued under the Shell Energy brand. [23]

Acquisitions

In October 2019, Shell Energy agreed to the £10.5m purchase of the customers of Green Star Energy, a brand of Canada's Just Energy. Green Star had around 200,000 residential gas and electricity customers. [24]

In February 2021, Shell Energy took over the broadband and phone customers of Post Office Ltd. [25]

In September 2021, Ofgem chose Shell Energy to take on the 255,000 customers of failed supplier Green Supplier Limited. [26] The following month, Ofgem chose Shell Energy to take on the 15,000 Colorado Energy, 235,000 Pure Planet and 9,000 Daligas customers after those suppliers ceased trading. [27]

Sale to Octopus Energy

In September 2023, it was reported that Octopus Energy would acquire Shell's household energy business in the UK and in Germany, in a deal expected to complete in late 2023. Octopus would take over providing energy for 1.4 million homes as well as broadband services for 500,000 customers. [28] In December 2023, it was reported that TalkTalk would acquire the broadband customers. [29]

Finances

In 2020 the company had revenue of £856 million, gross profit of £84 million and a net operating loss of £84 million. [30]

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References

  1. ↑ Hurst, Laura (18 October 2021). "Shell Energy Customer Base Grows as U.K. Power Suppliers Go Bust". Bloomberg News . Retrieved 5 October 2023.
  2. ↑ Gosden, Emily (9 December 2013). "First Utility eyes lower bills with Shell energy deal". The Daily Telegraph . Retrieved 5 October 2023.
  3. ↑ Chapman, Ben (25 March 2019). "Shell Energy is offering 700,000 UK homes 100% renewable electricity for first time ever". The Independent . Retrieved 5 October 2023.
  4. ↑ "SHELL ENERGY RETAIL LIMITED". Companies House. Retrieved 5 October 2023.
  5. ↑ Cave, Andrew (19 October 2013). "First utility boss: bills could double in the next 10 years". The Daily Telegraph. Retrieved 5 October 2023.
  6. ↑ "Fast Track 100 - First Utility". Fast Track. Archived from the original on 10 March 2016.
  7. ↑ "Energy minnow seeks big name". The Independent. 13 February 2012. Retrieved 5 October 2023.
  8. ↑ "First Utility appoints Siemens to deliver nationwide consumer Smart Meter programme". PR web. 6 June 2013. Archived from the original on 11 March 2022.
  9. ↑ "First:utility makes Smart Meters available for free". Energylinx. 29 January 2009. Archived from the original on 10 October 2017.
  10. ↑ Bradbury, Danny (18 May 2010). "First:utility warns of smart meter pitfalls and tightening targets" . BusinessGreen. Retrieved 5 October 2023.
  11. ↑ Taylor, Ann Elise (6 July 2011). "First Utility to lower energy bills with smart grid software". GreenwiseBusiness. Archived from the original on 30 September 2014.
  12. ↑ "Provisional Order under Section 25(2) of the Electricity Act 1989 and Section 28(2) of the Gas Act 1986" (PDF). Office of Gas and Electricity Markets . Retrieved 5 October 2023.
  13. ↑ Mason, Rowena (9 January 2011). "First Utility 'failing to protect vulnerable'". The Daily Telegraph. Retrieved 5 October 2023.
  14. ↑ "First Utility's vulnerable customer policy is 'not fit for purpose'". The Guardian . 10 January 2011. Retrieved 5 October 2023.
  15. ↑ Tobin, Lucy (3 January 2014). "Energy firm First Utility suggests clients give up tea and shower with other people to cut costs". The Independent. Retrieved 5 October 2023.
  16. ↑ "Super League agrees new three-year sponsorship deal". BBC Sport . 21 January 2014.
  17. ↑ Schaps, Karolin (8 September 2014). "UK's First Utility eyes IPO to fund expansion". Reuters. Retrieved 5 October 2023.
  18. ↑ Gosden, Emily (30 September 2015). "First Utility launches in Germany - branded as Shell". The Daily Telegraph. Retrieved 5 October 2023.
  19. ↑ Schaps, Karolin (23 September 2015). "UK's small energy suppliers gain market share from 'big six'". Reuters UK. Retrieved 5 October 2023.
  20. ↑ Vaughan, Adam (21 December 2017). "Shell to supply energy to UK households after takeover of First Utility". The Guardian. Retrieved 5 October 2023.
  21. ↑ "Shell completes acquisition of First Utility" (PDF). Shell plc (Press release). 28 February 2018. p. 5. Archived (PDF) from the original on 5 October 2023. Retrieved 5 October 2023.
  22. ↑ Bailey, Jo (27 March 2019). "First Utility becomes Shell Energy and goes 100% green". Choose. Archived from the original on 5 October 2023. Retrieved 5 October 2023.
  23. ↑ "Shell Energy Broadband Deals". Cable.co.uk. n.d. Archived from the original on 11 September 2023. Retrieved 5 October 2023.
  24. ↑ Stoker, Liam (9 October 2019). "Shell Energy lands £10.5 million Green Star Energy acquisition deal". Current. Archived from the original on 11 September 2023. Retrieved 5 October 2023.
  25. ↑ Jackson, Mark (1 February 2021). "Shell Signs Deal to Gobble Post Office's UK Broadband Division". ISPreview UK. Archived from the original on 15 August 2021. Retrieved 5 October 2023.
  26. ↑ Lempriere, Molly (28 September 2021). "Shell Energy takes on failed supplier Green's customers". Current. Archived from the original on 11 September 2023. Retrieved 5 October 2023.
  27. ↑ Mann, Jyoti (18 October 2021). "Latest UK energy supplier succumbs to gas market storm" . Financial Times. Archived from the original on 18 October 2021. Retrieved 5 October 2023.
  28. ↑ "Octopus to buy Shell's household energy firm". BBC News. 1 September 2023. Retrieved 5 October 2023.
  29. ↑ Kleinman, Mark (14 December 2023). "TalkTalk gets arms around Shell broadband base in deal with Octopus". Sky News. Retrieved 16 December 2023.
  30. ↑ "SHELL ENERGY RETAIL LIMITED". Companies House. n.d.
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