As part of the deal, Octopus Energy will take over the responsibility of supplying energy to 1.4 million homes and providing broadband services to 500,000 customers.
Octopus Energy has announced its acquisition of Shell’s household energy business in the United Kingdom and Germany, marking the latest expansion for the fast-growing energy provider.
As part of the deal, Octopus Energy will take over the responsibility of supplying energy to 1.4 million homes and providing broadband services to 500,000 customers. While the transaction is pending regulatory approval and not expected to be finalized until later this year, Shell’s existing customers have been advised to remain with their current energy provider for the time being.
This acquisition follows Octopus Energy’s recent purchase of Bulb, another household energy supplier, after Bulb faced financial difficulties and collapsed. Octopus Energy’s acquisition of Bulb added 1.5 million customers to its portfolio. With the addition of Shell’s customers, Octopus Energy’s total customer base will now reach nearly 6.5 million customers.
Although the financial terms of the deal have not been disclosed by either party, Octopus Energy emphasized that the transition will be seamless, and there will be no disruption to customer energy supply. Existing Shell Energy and broadband customers will receive communication about the next steps once regulatory approval is obtained, ensuring a smooth transfer of services.
In response to the acquisition, Shell stated that this sale aligns with its previously announced plan to exit its household energy businesses in the UK, Germany, and the Netherlands. Both Octopus Energy and Shell anticipate that the sale will be completed during the final three months of this year, subject to regulatory approvals.
Octopus has rapidly grown to become the UK’s second-largest domestic energy provider, positioning itself as a significant player in the industry. However, its acquisition of Bulb was met with opposition from rival energy providers, including British Gas (owned by Centrica), Eon, and Scottish Power.
These companies challenged the acquisition in the UK High Court, arguing that it was unfair for the government to provide Octopus with interest-free loans to rescue Bulb, which had faced financial challenges due to a spike in wholesale energy prices. Despite their legal challenge, the firms were unsuccessful in preventing the acquisition.
The acquisition of Shell’s household energy business represents a strategic move by Octopus Energy to expand its customer base and solidify its presence in the energy market. As the transition progresses and regulatory approvals are secured, both Octopus and Shell will work to ensure a seamless experience for customers, including the transfer of customer credit balances and existing direct debits.