Octopus agrees deal to snap up 2m Shell Energy customers to become the second biggest supplier in Britain

Octopus has today announced it has signed a deal to buy Shell Energy in Britain and Germany, taking on 2million new energy and broadband customers.

If approved, it would bring the challenger energy supplier’s total customer base to 6.5million, making it Britain’s second biggest supplier.

The deal would see 1.4million Shell Energy transferred to Octopus Energy along with 500,000 broadband customers.

It comes just a few months after Octopus completed its deal to transfer 1.5million Bulb customers to its platform after the green energy firm went bust in November 2021. 

At its peak, Bulb was Britain’s seventh biggest energy supplier but fell into administration after smaller firms failed to stay afloat.

Greg Jackson, chief executive and founder of Octopus Energy said: ‘Following a stringent process, we are pleased to be acquiring Shell Energy Retail in the UK and Germany.

‘Octopus has proven that it delivers game-changing service whilst innovating and investing relentlessly towards a cheaper cleaner energy system. 

‘Our commitment to customers is paramount and we will do whatever it takes to deliver the Octopus promise when we welcome these new customers too.’

Shell  revealed plans to sell its household energy supply business in early June, after recent market turmoil.

The oil and gas giant had decided to sell the unit after a five-month review.

The last major energy company to put its domestic arm up for sale was SSE in 2019 which provided energy to over 3million households. 

It was acquired by Ovo Energy in 2020. 

What to do if you’re a Shell Energy customer

The deal is expected to complete in the final three months of 2023 following regulatory approval so Shell customers have been advised to sit tight.

In time they will be transferred to their new account with Octopus, together with their existing direct debits and all customer credit balances are protected.

Natalie Mathie, energy expert at Uswitch, said: ‘Until any takeover is done and dusted, the business will operate as normal. 

‘Customers can be reassured that whatever happens, their credit balances will be protected and no action is required from them.

‘Shell Energy’s decision to exit the market is disappointing, as it has been a well-backed challenger to the larger energy suppliers.

‘It is important that there is strong competition between firms in the longer term, so suppliers cannot rest on their laurels when it comes to service quality and price.’ 

What about broadband customers?

Peter Ames, broadband expert at Broadband Genie, said: ‘While many eyes will be on how the Shell Energy takeover by Octopus will affect its energy customers, around half a million people also get their broadband through the company.

‘A question mark remains over the future of Shell Energy Broadband and whether Octopus will use this acquisition to venture into telecoms. 

‘For the time being at least, we are being told that customers won’t see a drop in service or an increase to their bills.’