Shell to exit energy retail operations in UK, Germany

London-based oil and gas group Shell has agreed to sell its home energy retail business in the UK and Germany to British energy group Octopus.

The transaction is effective September 1, 2023 and is expected to close in the fourth quarter of 2023, subject to regulatory approval.

The value of the deal was not disclosed, but Reuters reported earlier this year that Shell Energy could be valued at between $50 million and $100 million.

Shell's businesses in the UK and Germany currently provide gas, power and broadband services to around 2 million customers and operate under the Shell Energy brand.

The deal will expand Octopus' UK customer base to nearly 6.5 million households, making it the country's second-largest retailer, according to data from UK energy regulator Ofgem.

Shell and Octopus said they would deepen their partnership in electric vehicle charging. Shell will continue to develop its electric vehicle network, with the aim of reaching 100,000 public charging points in the UK by 2030.

Shell became an energy supplier in the UK for the first time in 2018, when it acquired First Utility. Since then, the unit’s operating losses have increased due to energy market volatility. However, Shell’s customer base has grown as it has absorbed customers from other failed suppliers.

Shell began a strategic review of its energy businesses in Europe in January 2023. The company said it would exit its home energy business in the region due to poor profitability. The decision marks a clear shift in strategy for a company that once had ambitions to become a world- leading energy producer.

In addition to the UK and Germany, Shell has also ended its retail energy business to households in the Netherlands .

Nguyen Tuyet (According to Oil Price, Bloomberg)

Source: https://www.nguoiduatin.vn/shell-cham-dut-hoat-dong-ban-le-nang-luong-o-anh-duc-a624560.html