Octopus Energy in talks to expand and take over Shell’s household energy business
OCTOPUS Energy is in talks to get its tentacles on Shell’s household energy business months after taking on 1.5million Bulb customers.
Oil giant Shell said earlier this year it was considering pulling out of the retail market and began the sale process in June.
Octopus is now front-runner to buy it, according to Sky News, with experts putting the price in the region of £300million.
However, the company set up by Greg Jackson still faces competition from rival firms, including OVO and British Gas.
If Octopus is successful in buying the business, it would grow to 6.5million customers — just short of British Gas’s 7.52million household customers.
Its acquisition of Bulb, which went bust in 2021 amid soaring energy costs, irritated rivals who launched a legal challenge over claims it had received government subsidies.
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But the fall in prices since the deal means the Treasury got back £1.2billion, rather than a possible £4billion loss.
While Shell has made bumper profits on the back of higher energy prices, its household arm has been loss-making and no longer considered a priority by new boss Wael Sawan.
First Utility, founded in 2008, was bought by Shell a decade later to be its household arm.
It currently supplies 1.4million homes.
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