MOSCOW (MRC) -- Shell Petroleum Company Limited, through its 100% owned subsidiary Impello Limited (“Shell”), has agreed to sell its home energy businesses, Shell Energy Retail Limited (SERL) in the UK and Shell Energy Retail GmbH (SERG) in Germany, to Octopus Energy Group, as per Reuters.
The businesses provide domestic gas, power, and broadband services to approximately two million customers and operate under the Shell Energy brand. The transaction has an effective date of September 1, 2023 and is expected to complete in the fourth quarter of 2023, subject to regulatory approval.
Octopus is a leading energy retail company which provides innovative energy solutions to residential customers and operates in 15 countries.
Tariffs and offers will remain unchanged for all existing home energy customers, including continued access to 100% renewable power. Customer service will not be interrupted and, following regulatory approval and deal completion, both companies will ensure a seamless transfer of the businesses and eventually brand from Shell Energy to Octopus.
“This agreement follows the announcement during our Capital Markets Day to divest our home energy retail business in Europe,” said Steve Hill, Executive Vice-President, Shell Energy. “To drive performance, discipline and simplification, we are prioritising countries, projects, and routes to market where we can deliver the most value. We will work closely with Octopus to ensure a seamless transition and continued high standards of customer service.”
As part of the agreement, Shell and Octopus have also signed a memorandum of understanding to explore a potential international partnership to bring the best possible experience to their EV charging customers, including Shell Recharge subscribers. Options will be explored for possible joint promotions and brand activations, alongside co-operation on out-of-home charging and other activities across the EV value chain. Shell is already a leading EV charging provider with a global charging network set to expand to around 200,000 public charging points by 2030.
We remind, Shell is considering a sale of its Singapore refining and petrochemical plants as part of a broader strategic review and has hired investment bank Goldman Sachs to explore a potential deal, said several sources close to the matter. The global energy major's new CEO, Wael Sawan, is targeting spending cuts over the next two years to boost profitability while remaining committed to achieving net zero emissions by 2050.