Shell to Sell Home Energy Businesses to Octopus Energy, Eyes Collaboration in EV Charging

Shell to Sell Home Energy Businesses to Octopus Energy, Eyes Collaboration in EV Charging

(IN BRIEF) Shell Petroleum Company Limited, via its subsidiary Impello Limited, is set to divest its UK and German home energy businesses, Shell Energy Retail Limited (SERL) and Shell Energy Retail GmbH (SERG), to Octopus Energy Group. These businesses cater to around two million customers and provide domestic gas, power, and broadband services under the Shell Energy brand. The transfer, effective September 1, 2023, is expected to finalize in Q4 2023, pending regulatory approval. Existing customers will experience uninterrupted service and unchanged tariffs, including access to 100% renewable power. Additionally, Shell and Octopus have signed a memorandum of understanding to explore potential collaborations in the EV charging sector.

(PRESS RELEASE) LONDON, 2-Sep-2023 — /EuropaWire/ — 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.

Notes to editors

• Shell continues to use the renewable power it generates to serve its customers, decarbonise its assets and to enable the production of low-carbon molecules. The company focuses on opportunities where it can integrate across the value chain through trading and optimisation.
• Following regulatory approval and completion of the sale, ownership of the businesses will transfer to Octopus and existing Shell Energy customers will remain under the Shell brand for several months while technology and digital communications are migrated to the Octopus brand.
• Other home energy supply markets for Shell in the USA and Australia, where there is integrated value, as well as Shell’s wholesale and small to medium enterprise (SME) customer supply businesses under the Shell Energy brand, are not included in this sales agreement.
• Shell is winding down its home energy retail business in the Netherlands and is in the process of transitioning those customers.

Cautionary note

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Forward-Looking Statements

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Shell’s net carbon intensity

Also, in this press release we may refer to Shell’s “Net Carbon Intensity”, which include Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Intensity” is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-Zero Emissions Target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCI target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward Looking Non-GAAP measures

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SOURCE: Shell plc