Octopus Energy Group has signed a deal to purchase Shell Energy within the UK and Germany, taking over practically two million new dwelling energy and broadband clients.

The transfer comes after a aggressive course of run by Shell and can develop challenger power provider Octopus to almost 6.5 million family clients within the UK and nearly 300,000 in Germany.

Greg Jackson, CEO and founding father of Octopus Energy Group, commented: “Following a stringent process, we are pleased to be acquiring Shell Energy Retail in the UK and Germany.

“Octopus has proven that it delivers game-changing service whilst innovating and investing relentlessly towards a cheaper cleaner energy system.

“Our commitment to customers is paramount and we will do whatever it takes to deliver the Octopus promise when we welcome these new customers too.”

The deal, which can switch 1.4 million Shell power clients and 500,000 broadband clients to Octopus, is predicted to conclude within the fourth quarter of 2023 following regulatory approval.

All Shell power and broadband clients will then be contacted by e-mail concerning the subsequent steps. According to Octopus, the transition won't disrupt buyer power provide, nor will it bear an impression on buyer’s credit score balances. The agency stated: “Credit balances will be protected, and will automatically get transferred to their new account with Octopus together with their existing direct debits.”

Octopus has a observe file in large-scale buyer migrations and not too long ago accomplished the switch of 1.5 million Bulb clients in simply six months.

Natalie Mathie, power professional at Uswitch.com, commented: “We’ve known that Shell Energy has been planning to exit the UK retail energy market for a while, so it will be good for customers to have more certainty about what might happen next.

“Despite today’s announcement, it could take some time until the deal is approved and completed, although Shell Energy believes it could happen later this year. Until any takeover is done and dusted, the business will operate as normal.

Ms Mathie added: “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.”

I’m a Shell buyer, what does this imply for me?

Later this yr, Shell’s dwelling power clients will transfer to Octopus Energy. According to recommendation printed by Octopus on a weblog that it pledges to maintain “regularly” up to date, Shell clients don't must do something because the transition shall be computerized and there shall be no disruption to power provide.

It stated: “Your energy prices won’t change as a result of the announcement. If you have a credit balance with Shell Energy, it is protected.

“You should keep your existing Direct Debit in place as all direct debits will be automatically transferred. You can get help from Shell and manage your account the same way you always have, and you'll be looked after by the same dedicated team.”

It continued: “We’re expecting the agreement to get regulatory approval in Quarter four of 2023, and we'll start moving customers to Octopus soon after that. Closer to that time, Shell will contact you with everything you need to know. We’ll work quickly and carefully to transition you over to Octopus and share regular updates.”

It additionally asks clients to not contact Octopus or Shell for extra info and to as a substitute follow this page for updates.

As a part of the settlement, Shell and Octopus Energy have additionally signed a memorandum of understanding to discover a possible worldwide partnership.

The firms are planning to convey the “best possible” expertise to their EV charging clients, together with Shell Recharge and Octopus Electroverse subscribers. Options shall be explored for doable joint promotions, model activations and different actions throughout the EV worth chain.

Founded in 2015, Octopus is headquartered within the UK and operates in 15 international locations, with vital companies in power retail, era, know-how and electrical autos.

It has obtained over $1billion in funding from world giants, together with funding funds, pension funds and enormous power firms and has not too long ago topped Citizens Advice’s star scores.