RoI/Green Energy: Shell sells retail energy businesses in UK, Germany

*Shell Oil has agreed to sell its retail home energy businesses in the UK and Germany to Octopus Energy Group to explore a potential international partnership in Electric Vehicles (EV) charging, says the UK-based supermajor

Isola Moses | ConsumerConnect

Shell will be selling Shell Energy Retail Limited (SERL) in the UK and Shell Energy Retail GmbH (SERG) in Germany, under a broader agreement with Octopus Energy to explore a potential international partnership in EV charging, Oil Price report said Friday, September 1, 2023.

It was gathered the sale had an effective date of last Friday, but the deal is expected to complete in the fourth quarter of this year, subject to regulatory approval.

The businesses Shell is selling provide domestic gas, power, and broadband services to around two million consumers and operate under the Shell Energy brand.

Octopus Energy, Ovo, and British Gas were reportedly interested in buying Shell’s UK retail business, report said.

Financial details of the transaction were not disclosed, but sources told Reuters earlier 2023, that Shell Energy could be valued at between $50 million and $100 million.

Steve Hill, Executive Vice-President of Shell Energy explained: “This agreement follows the announcement during our Capital Markets Day to divest our home energy retail business in Europe.

“To drive performance, discipline and simplification, we are prioritising countries, projects, and routes to market where we can deliver the most value.”

It is also recalled that Shell, earlier this year, had disclosed that it intended to exit the home energy business in Europe, amid poor returns and a review of its retail operations.

Shell, Friday, September 1, said it was winding down its home energy retail business in The Netherlands, and is in the process of transitioning those consumers.

Earlier this year, Shell was criticised by institutional investors in Europe for its new strategy to continue investing in oil and gas production and selectively pour capital into renewable energy solutions, to the point of some investors considering removing it from their portfolios report stated.

Wael Sawan, Chief Executive of Shell, on the company’s Capital Markets Day June this year, also said: “It is critical that the world avoids dismantling the current energy system faster than we are able to build the clean energy system of the future.

“Oil and gas WILL continue to play a crucial role in the energy system for a long time to come with demand reducing only gradually over time.”