Shell considers exiting UK, German, Dutch energy retail businesses...

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LONDON, Jan 26 (Reuters) - Shell (SHEL.L) is considering exiting its home energy retail businesses in Britain, the Netherlands and Germany in the wake of "tough market conditions", it said on Thursday.

European energy suppliers have struggled over the past year with soaring wholesale prices and efforts by governments to shield consumers from rising bills.

Shell said it had launched a strategic review of the three businesses which is likely to take a few months, but that no decision had been taken yet on their future.

Shell injected nearly $1.5 billion in cash and credit into its British energy retail business in 2022 to help it weather huge volatility in power prices that caused the collapse of several rival UK utilities.

Shell Energy Retail, its UK business, has 1.4 million customers, while its German business has 110,000 and the Dutch business 15,000.

Shell said its wholesale and business-to-business (B2B) energy supply businesses were not part of the strategic review, and neither were its home energy supply businesses in the United States and Australia.

Although the retail businesses have struggled, Shell is set to post a record annual profit of over $30 billion in 2022 when it reports results on Feb. 7 thanks to soaring oil and gas prices.

[dutchman]

Another nail in the coffin of Westwood Business Park.

As a long-suffering customer of Shell Energy I can't say I'm broken-hearted at the prospect although it's possible their successor will have even worse customer service.

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Ovo Energy plots takeover of Shell arm in bid to reclaim number two spot



Ovo Energy is plotting a takeover of Shell's UK domestic gas and electricity business in a move that would see it reclaim the number two slot in the British market.

Sky News has learnt that Ovo is expected to table an indicative offer for Shell Energy Retail Limited's (SERL) UK operation, which has 1.4m energy customers.

Sources said that a bid would be tabled on Wednesday to meet an informal deadline set by Lazard, which is overseeing the process on Shell's behalf.

If successful, it would grow Ovo's customer base from about 4m UK households to 5.4m households, edging it ahead of Octopus Energy, which - following its takeover of the nationalised supplier Bulb - now has close to 5m household customers.

Industry executives said that Centrica, the owner of British Gas, had also been exploring an offer for the SERL arm.

Such a move would be controversial because it would see the industry's largest player substantially grow its market share.

Centrica has also been embroiled in a scandal over the forced installation of pre-payment meters during the cost-of-living crisis, sparking fury among politicians about both the company's conduct and regulator Ofgem's oversight of the practices.

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It would be nice to think Shell Energy was no longer run by people with their head stuck up their arse but I doubt very much will change?

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Major energy supplier puts itself up for sale



Shell has revealed plans to sell its household energy supply business in the coming months after the recent market turmoil.

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

Ovo Energy and Octopus Energy have reportedly tabled bids, which had already been put up for sale.

'As we stated at the end of January, we have been conducting a strategic review of our home energy retail businesses in the UK, the Netherlands and Germany,' Shell said.

'That review has now concluded and as a consequence, we intend to exit those businesses.'

The energy giant launched in 2008 under the name First Utility, before Shell Plc purchased it a decade later.

It employs around 2,000 people in the UK and supplies energy to around 1.4 million homes.

Shell added: 'A sales process is already under way, with the intent to reach an agreement with a potential buyer in the coming months.

'Deal completion would be subject to the usual regulatory and other approvals.'

Shell says nothing will change for its customers during the sales process.

In addition to its home energy customers, half a million households get their broadband from Shell Energy.

Shell said: 'We are committed to supporting both customers and staff and protecting customer interests during this period, and to ensuring a seamless transfer to a buyer capable of delivering on its obligations, including our intent to maximise employment.

'Neither our B2B wholesale and SME customer supply businesses under the Shell Energy brand, or our home energy retail businesses outside Europe, are in scope of this potential divestment.'

Shell said it expects to complete the deal in the coming months, however any potential purchase is subject to regulatory approval.

Affected customers should be given several months' notice before their accounts are transferred over to the new supplier.

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Octopus Energy 'in detailed talks' to buy Shell's 1.4m UK energy customers



Octopus Energy is reportedly in “detailed talks” to buy Shell’s UK household energy supply business, as the oil company seeks to end its short-lived foray into the sector.

Shell started supplying energy directly to UK households for the first time after a 2017 takeover, but it put the business up for sale in January after a period in which retail suppliers have struggled to make money amid a global energy crisis.

Octopus has become the frontrunner in talks to take over the business, but other companies are still in contention, Sky News reported on Friday.

A takeover would further entrench Octopus’s position as one of the biggest suppliers after a rapid expansion that has included taking on customers of Bulb, a rival that collapsed during the crisis.

Octopus declined to comment. Shell declined to comment to Sky News.

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Octopus to buy Shell's household energy firm



Octopus has announced it will buy Shell's household energy business in the UK and Germany.

Octopus Energy said that it will take over providing energy for 1.4 million homes as well as broadband services for 500,000 customers.

Shell's customers are advised to "sit tight for now" as the deal is not expected to be completed until later this year.

It is the latest expansion for Octopus which bought Bulb after its collapse.

That deal - which rival energy providers challenged in the UK High Court over state support - gave Octopus an additional 1.5 million customers.

With Shell, its total customer base will grow to nearly 6.5 million customers.

Shell and Octopus both refused to disclose how much the business is being sold for.

Octopus said: "There will be a smooth transition and no disruption to customer energy supply, all Shell energy and broadband customers will be contacted about the next steps following regulatory approval.

"Customer credit balances are protected, and will automatically get transferred to their new account with Octopus together with their existing direct debits."

Shell said the sale is part of plan announced earlier this year to exit its household energy businesses in the UK, Germany and the Netherlands.

The companies are hoping the sale will be finalised in the final three months of this year, subject to regulatory approval.

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Shell Energy fined £1.4m by Ofcom for breaching consumer protection rules



The electricity, phone and broadband provider arm of Shell has been fined £1.4m by the communications regulator for breaking customer protection rules.

Shell Energy was hit with the fine for failing to flag contract ends and the best deals for phone and broadband customers, Ofcom said.

More than 70,000 such customers were not properly prompted to review their contracts or told they could save by moving to a new plan, the Ofcom decision said.

An investigation by the watchdog found "important consumer protection rules" were broken.

The investigation uncovered 72,837 customers who were affected by Shell Energy's failures between March 2020 and June 2022.

Providers are required to proactively let customers know before their existing contracts are up and to provide information to help them shop around and take advantage of a better deal.

Customers must also be told if they are already outside of their minimum contract period.

There's a specific requirement for telecoms and pay-tv companies to issue an end-of-contract notification to customers by text, email or letter between 10 and 40 days before the minimum contract period comes to an end.
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Annual notifications also have to be sent to customers already outside of the minimum contract period, reminding them they can leave or change deal.

Both notifications must include best tariff information to help customers understand the savings they can make on a new deal or by changing provider.

But in some instances Shell Energy failed to send out end-of-contract notifications and annual best tariff notifications at all.

In other cases, customers were notified but received inaccurate or incomplete information. This was caused by a combination of manual errors and systems and process failures at Shell Energy, Ofcom said.

A total of 7,750 customers received an end-of-contract notification that contained incorrect information about the price they would pay once their minimum term period came to an end.

The effect was 6,054 customers went on to pay higher charges than they were originally quoted, collectively amounting to £398,417.67 - an average of £65.81 each.

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I was promised a 'Welcome Pack' when I moved to property served by Shell. All I've had since is threats of legal action if I didn't pay the previous occupant's bill. Sixteen months later and still no 'Welcome Pack' or apology. Shell isn't fit to run any kind of business.

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Huge changes at Coventry-based energy firm as hundreds of jobs cut



Hundreds of jobs are being cut at a Coventry-based energy firm following an acquisition move late last year. Octopus Energy announced on Monday how it will integrate the Shell Energy Retail team into its business following the acquisition of the company in December 2023.

As part of this, 500 customer-facing colleagues at Shell Energy Retail in Coventry will be offered new roles at Octopus Energy, with the majority of these based in Coventry, a spokesman for Octopus Energy said.

On top of this, 750 roles are being made redundant in non-customer facing functions. It was not immediately clear if any of these roles are based in Coventry although the firm said the number includes many remote roles across the UK.

Octopus is encouraging these employees to apply for the company’s 500 open roles. The spokesman added that the firm is looking to grow its employment this year and will create 1,200 jobs in the Midlands in 2024.

This includes 150 new roles in Coventry, where it opened a new office in Friargate [pictured] last year. The firm also employs 635 people in its offices in Leicester and Warwick.

A spokesman said: “Octopus is offering retraining and preferential treatment for former Shell employees, or the option of generous redundancy payments (minimum of 4 months’ pay) plus assistance in finding alternative employment. Overall, the Midlands will enjoy over 1,000 new jobs from Octopus this year, setting a firm foundation for our expansion across the years to come.”