Octopus Energy is set to elevate its position in the UK energy market by acquiring Shell’s household electricity and gas business, potentially making it the second-largest domestic energy supplier in the country.
With this purchase, Octopus will serve 6.5 million households, encompassing Shell Energy’s 1.4 million customers.
In recent years, Octopus Energy’s expansion has been propelled by its acquisition of customers from failed energy providers, including Avro and Bulb.
Energy experts stress the significance of competition in maintaining service quality and pricing.
Natalie Mathie, an energy expert at Uswitch, expressed disappointment at Shell Energy’s withdrawal from the market, noting its role as a challenger to larger energy providers.
Ms Mathie said: “Shell Energy‘s decision to exit the market is disappointing, as it has been a well-backed challenger to the larger energy suppliers. It is important that there is strong competition between firms in the longer term, so suppliers cannot rest on their laurels when it comes to service quality and price.”
Emily Seymour, Which? Energy Editor, said: “Shell Energy customers will understandably be anxious to figure out exactly what moving to a new supplier means for them.
“There is no need to panic – your gas and electricity won’t be cut off and your credit will be protected. It usually takes a few weeks for customers to be transferred and your new supplier will get in touch to tell you about your new tariff, how payments will work and how you’ll get any credit back.”
Customers have been advised to take meter readings, keep track of any accrued credit and avoid switching suppliers during the transition process to facilitate a smooth transfer and credit reimbursement.
