Shell Energy
{{Short description|A consumer broadband, gas and electricity supplier in the UK}}
{{COI|date=July 2016}}
{{Use British English|date=November 2019}}
{{Use dmy dates|date=November 2019}}
{{Infobox company
| name = Shell Energy Retail Limited
| logo = Shell Energy logo 2019.svg
| type =
| industry = Utilities
| fate =
| predecessor = First Utility
| successor =
| founded = 2008
| founder =
| defunct =
| hq_location_city = Coventry
| hq_location_country = United Kingdom
| area_served = United Kingdom
| key_people = Tony Keeling, Chief Executive Officer
| products = Gas & electricity
| owner =
| num_employees =
| num_employees_year =
| parent = Octopus Energy
| website = {{Official URL}}
}}
Shell Energy Retail Limited was a British consumer gas, electricity and broadband provider.{{cite news |last=Hurst |first=Laura |date=18 October 2021 |title=Shell Energy Customer Base Grows as U.K. Power Suppliers Go Bust |url=https://www.bloomberg.com/news/articles/2021-10-18/shell-energy-customer-base-grows-as-u-k-power-suppliers-go-bust |work=Bloomberg News |access-date=5 October 2023}} Formerly a subsidiary of Shell, the business was acquired by Octopus Energy in December 2023.
The company purchased gas and electricity from international markets for resale to consumers. Originally known as First Utility, the company had a relationship with Shell, where it acted as an intermediary to purchase wholesale energy on the global market.{{cite news |last=Gosden |first=Emily |date=9 December 2013 |title=First Utility eyes lower bills with Shell energy deal |url=https://www.telegraph.co.uk/finance/newsbysector/energy/10506225/First-Utility-eyes-lower-bills-with-Shell-energy-deal.html |work=The Daily Telegraph |access-date=5 October 2023}} Shell completed the purchase of the company in February 2018, and rebranding to Shell Energy in the UK took place in March 2019. The business formed part of Shell's New Energies division until the 2023 sale to Octopus Energy.
History
First Utility was launched in 2008 by co-founders Mark Daeche, Darren Braham and Marcus Citron as a spin-out from First Telecom.{{cite news |last=Cave |first=Andrew |date=19 October 2013 |title=First utility boss: bills could double in the next 10 years |work=The Daily Telegraph |url=https://www.telegraph.co.uk/finance/newsbysector/energy/10390285/First-utility-boss-bills-could-double-in-the-next-10-years.html |access-date=5 October 2023}}{{cite web |url=http://www.fasttrack.co.uk/fasttrack/leagues/dbDetails.asp?siteID=1&compID=3284&yr=2011 |title=Fast Track 100 - First Utility |website=Fast Track |archive-url=https://web.archive.org/web/20160310215848/http://fasttrack.co.uk/fasttrack/leagues/dbdetails.asp?compid=3284&siteid=1&yr=2011 |archive-date=10 March 2016}} In January 2012, the company appointed the former lastminute.com CEO Ian McCaig as its new CEO.{{cite news |author= |date=13 February 2012 |title=Energy minnow seeks big name |url=https://www.independent.co.uk/i/matrix/the-business-matrix-monday-13-february-2012-6818887.html |work=The Independent |access-date=5 October 2023}}
As a small new entrant to the market, the company experimented with new technology.{{Citation needed|date=October 2021}} The company was the first in the UK to offer smart meters to its residential customers.{{cite web |date=6 June 2013 |title=First Utility appoints Siemens to deliver nationwide consumer Smart Meter programme |url=http://uk.prweb.com/releases/First-Utility/siemens/prweb10808065.htm |website=PR web |archive-url=https://web.archive.org/web/20220311055405/https://www.prweb.com/releases/first-utility/siemens/prweb10808065.htm |archive-date=11 March 2022}}{{cite web |title=First:utility makes Smart Meters available for free |date=29 January 2009 |url=http://www.energylinx.co.uk/news/2009/01/firstutility-makes-smart-meters-availabl.html |website=Energylinx |archive-url=https://web.archive.org/web/20171010010149/http://news.energylinx.co.uk/2009/01/firstutility-makes-smart-meters-availabl.html |archive-date=10 October 2017}} This also gave the company experience of a large smart meter roll-out programme.{{cite news |last=Bradbury |first=Danny |date=2010-05-18 |title=First:utility warns of smart meter pitfalls and tightening targets |url=http://www.businessgreen.com/bg/news/1804388/first-utility-warns-smart-meter-pitfalls-tightening-targets |work=BusinessGreen |url-access=limited |access-date=5 October 2023}}{{Citation needed|date=October 2021}} The company partnered with various other providers including oPower and Google PowerMeter to provide customers with access to usage data.{{cite news |last=Taylor |first=Ann Elise |date=6 July 2011 |title=First Utility to lower energy bills with smart grid software |url=http://www.greenwisebusiness.co.uk/news/first-utility-to-lower-energy-bills-with-smart-grid-software--2458.aspx |website=GreenwiseBusiness |archive-url=https://archive.today/20140930222607/http://www.greenwisebusiness.co.uk/news/first-utility-to-lower-energy-bills-with-smart-grid-software--2458.aspx |archive-date=30 September 2014}}
Ofgem issued a disciplinary order against the company in December 2010{{cite web |url=https://www.ofgem.gov.uk/ofgem-publications/37618/provisional-order-first-utility.pdf |title=Provisional Order under Section 25(2) of the Electricity Act 1989 and Section 28(2) of the Gas Act 1986 |website=Office of Gas and Electricity Markets |access-date=5 October 2023}} for failing to protect vulnerable customers.{{cite news |last=Mason |first=Rowena |date=9 January 2011 |title=First Utility 'failing to protect vulnerable' |url=https://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/8247840/First-Utility-failing-to-protect-vulnerable.html |work=The Daily Telegraph |access-date=5 October 2023}}{{cite news |date=10 January 2011 |title=First Utility's vulnerable customer policy is 'not fit for purpose' |url=https://www.theguardian.com/money/2011/jan/10/first-utility-vulnerable-customer-policy |work=The Guardian |access-date=5 October 2023}}
In 2014, the company received criticism for the tone of its energy saving advice. When it was reported that shadow Energy Minister Tom Greatrex had said the advice was an "insult" to millions of people, the company's reported response was that "These tips are meant to provide some advice on how we might reduce our energy usage and absolutely not intended to trivialise the issue of fuel poverty, something we take very seriously."{{cite news |last=Tobin |first= Lucy |date=3 January 2014 |title=Energy firm First Utility suggests clients give up tea and shower with other people to cut costs |url=https://www.independent.co.uk/news/uk/home-news/energy-firm-first-utility-suggests-clients-give-up-tea-and-shower-with-other-people-to-cut-costs-9037956.html |work=The Independent |access-date=5 October 2023}}
In January 2014, the company signed a three-year deal to become title sponsors of the Super League.{{cite news |author= |date=21 January 2014 |title=Super League agrees new three-year sponsorship deal |url=https://www.bbc.co.uk/sport/0/rugby-league/25826757 |website=BBC Sport}}
In September 2014, the firm announced it was considering an initial public offering or outside investment to fund foreign expansion.{{cite news |last=Schaps |first=Karolin |date=8 September 2014 |title=UK's First Utility eyes IPO to fund expansion |url=https://www.reuters.com/article/us-firstutility-ipo-idUSKBN0H20WL20140907 |website=Reuters |access-date=5 October 2023}}
In September 2015, the company announced an expansion into Germany, to be branded as Shell.{{cite news |last=Gosden |first=Emily |date=30 September 2015 |title=First Utility launches in Germany - branded as Shell |url=https://www.telegraph.co.uk/finance/newsbysector/energy/11900102/First-Utility-launches-in-Germany-branded-as-Shell.html |work=The Daily Telegraph |access-date=5 October 2023}} In the same month, Reuters reported that First Utility had doubled customer numbers in three of the last four years, adding 275,000 customers in the year to July 2015.{{cite web |last=Schaps |first=Karolin |date=23 September 2015 |title=UK's small energy suppliers gain market share from 'big six' |url=http://uk.reuters.com/article/uk-britain-energy-utilities-idUKKCN0RM2TT20150922 |archive-url=https://web.archive.org/web/20160130233538/http://uk.reuters.com/article/uk-britain-energy-utilities-idUKKCN0RM2TT20150922 |url-status=dead |archive-date=30 January 2016 |website=Reuters UK |access-date=5 October 2023}}
Shell reached an agreement to buy the company in December 2017,{{cite news |last=Vaughan |first=Adam |date=21 December 2017 |title=Shell to supply energy to UK households after takeover of First Utility |url=https://www.theguardian.com/business/2017/dec/21/shell-to-supply-energy-to-uk-households-after-takeover-of-first-utility |work=The Guardian |access-date=5 October 2023}} and the deal was completed on 28 February 2018.{{cite press release |author= |date=28 February 2018 |title=Shell completes acquisition of First Utility |url=https://www.shell.co.uk/about-us/news-and-publications/media-releases/_jcr_content/root/main/section_1223829208/call_to_action/links/item0.stream/1692688072265/254bcbb49b1502562ea70491c751c1be2a29e271/2018-shell-uk-media-releases.pdf |website=Shell plc |page=5 |url-status=live |access-date=5 October 2023 |archive-url=https://web.archive.org/web/20231005145949/https://www.shell.co.uk/about-us/news-and-publications/media-releases/_jcr_content/root/main/section_1223829208/call_to_action/links/item0.stream/1692688072265/254bcbb49b1502562ea70491c751c1be2a29e271/2018-shell-uk-media-releases.pdf |archive-date=5 October 2023}} In March 2019, the company was rebranded from First Utility to Shell Energy,{{cite web |title=SHELL ENERGY RETAIL LIMITED |url=https://beta.companieshouse.gov.uk/company/05070887 |access-date=5 October 2023 |website=Companies House}} and it was stated that all customers would be supplied with electricity from 100% renewable sources.{{cite news |last=Bailey |first=Jo |date=27 March 2019 |title=First Utility becomes Shell Energy and goes 100% green |url=https://www.choose.co.uk/news/2019/first-utility-rebrands-shell-energy/ |website=Choose |access-date=5 October 2023 |url-status=live |archive-url=https://archive.today/20231005151356/https://www.choose.co.uk/news/2019/first-utility-rebrands-shell-energy/ |archive-date=5 October 2023}}{{cite news |last=Chapman |first=Ben |date=25 March 2019 |title=Shell Energy is offering 700,000 UK homes 100% renewable electricity for first time ever |url=https://www.independent.co.uk/news/business/news/shell-energy-switch-first-utility-renewable-electricity-a8838291.html |access-date=5 October 2023 |work=The Independent}}
First Utility had also offered an Internet access service, bundled with line rental and phone calls, and this was continued under the Shell Energy brand.{{cite web |url=https://www.cable.co.uk/broadband/providers/shell-energy-broadband/ |title=Shell Energy Broadband Deals |date=n.d. |website=Cable.co.uk |url-status=live |access-date=5 October 2023 |archive-url=https://web.archive.org/web/20230911151916/https://www.cable.co.uk/broadband/providers/shell-energy-broadband/ |archive-date=11 September 2023}}
= Acquisitions =
In October 2019, Shell Energy agreed to the £10.5m purchase of the customers of Green Star Energy, a brand of Canada's Just Energy. Green Star had around 200,000 residential gas and electricity customers.{{cite news |last=Stoker |first=Liam |date=9 October 2019 |title=Shell Energy lands £10.5 million Green Star Energy acquisition deal |url=https://www.current-news.co.uk/news/shell-energy-lands-10-5-million-green-star-energy-acquisition-deal |website=Current |url-status=live |access-date=5 October 2023 |archive-url=https://web.archive.org/web/20230911153434/https://www.current-news.co.uk/shell-energy-lands-10-5-million-green-star-energy-acquisition-deal/ |archive-date=11 September 2023}}
In February 2021, Shell Energy took over the broadband and phone customers of Post Office Ltd.{{cite news |last=Jackson |first=Mark |date=1 February 2021 |title=Shell Signs Deal to Gobble Post Office's UK Broadband Division |website=ISPreview UK |url=https://www.ispreview.co.uk/index.php/2021/02/shell-signs-deal-to-gobble-post-offices-uk-broadband-division.html |url-status=live |archive-url=https://web.archive.org/web/20210815024140/https://www.ispreview.co.uk/index.php/2021/02/shell-signs-deal-to-gobble-post-offices-uk-broadband-division.html |archive-date=15 August 2021 |access-date=5 October 2023}}
In September 2021, Ofgem chose Shell Energy to take on the 255,000 customers of failed supplier Green Supplier Limited.{{cite news |last=Lempriere |first=Molly |date=28 September 2021 |title=Shell Energy takes on failed supplier Green's customers |website=Current |url=https://www.current-news.co.uk/news/shell-energy-takes-on-failed-supplier-greens-customers |url-status=live |access-date=5 October 2023 |archive-url=https://web.archive.org/web/20230911151915/https://www.current-news.co.uk/shell-energy-takes-on-failed-supplier-greens-customers/ |archive-date=11 September 2023}} The following month, Ofgem chose Shell Energy to take on the 15,000 Colorado Energy, 235,000 Pure Planet and 9,000 Daligas customers after those suppliers ceased trading.{{cite news |last=Mann |first=Jyoti |date=18 October 2021 |title=Latest UK energy supplier succumbs to gas market storm |work=Financial Times |url=https://www.ft.com/content/fc808f8e-be01-4e03-b142-de53aa07c2c1 |url-access=limited |url-status=live |access-date=5 October 2023 |archive-url=https://archive.today/20211018172701/https://www.ft.com/content/fc808f8e-be01-4e03-b142-de53aa07c2c1 |archive-date=18 October 2021}}
Sale to Octopus Energy
In September 2023, it was reported that Octopus Energy would acquire Shell's household energy business in the UK and in Germany, in a deal expected to complete in late 2023. Octopus would take over providing energy for 1.4 million homes as well as broadband services for 500,000 customers.{{cite news |author= |date=1 September 2023 |title=Octopus to buy Shell's household energy firm |url=https://www.bbc.com/news/business-66684386 |work=BBC News |access-date=5 October 2023}} In December 2023, it was reported that TalkTalk would acquire the broadband customers.{{Cite web |last=Kleinman |first=Mark |date=14 December 2023 |title=TalkTalk gets arms around Shell broadband base in deal with Octopus |url=https://news.sky.com/story/talktalk-gets-arms-around-shell-broadband-base-in-deal-with-octopus-13030112 |access-date=2023-12-16 |website=Sky News |language=en}}
Finances
In 2020 the company had revenue of £856 million, gross profit of £84 million and a net operating loss of £84 million.{{cite web |url=https://find-and-update.company-information.service.gov.uk/company/05070887/filing-history |title=SHELL ENERGY RETAIL LIMITED |date=n.d. |website=Companies House}}
References
{{reflist}}
External links
- {{Official website}}
{{Energy in the United Kingdom|companies}}
Category:Electric power companies of the United Kingdom
Category:Energy companies established in 2008