Octopus is now Britain’s second biggest energy supplier after completing the purchase of Shell’s household and gas electricity business.
The company, which started as a challenger to traditional suppliers, is now in touching distance of Centrica-owned British Gas’ position as Britain’s top energy supplier.
Founded in 2015 by Greg Jackson, Octopus will take on 1.3million Shell Energy customers, bringing its total customer base to 6.6million.
Octopus seals the deal to buy 1.3m customers from Shell’s household gas and electricity business
Ofgem figures show that British Gas had a 20.4 per cent share of the electricity market and 28.2 per cent of the gas market.
Octopus had a 16.6 per cent share of the electricity market and 16.3 per cent of gas, prior to its deal with Shell. Shell is estimated to have 4.5 per cent of market share.
The deal comes less than a year after Octopus took on 1.5million customers from Bulb after it collapsed into administration.
As part of the deal, Octopus has also acquired 500,000 Shell broadband customers and has boosted its customer base in Germany to almost 300,000.
Chief executive Jackson said: ‘We are pleased to be the new home for Shell Energy Retail customers in the UK and Germany.
‘Now even more customers can acquire our five star customer service and pick from a whole heap of cheap, green tariffs, benefitting both their pockets and the energy system.
‘Our commitment to customers is paramount, and we will deliver the Octopus promise when we welcome these new customers too.’
Shell Energy entered the UK domestic energy market when it bought First Utility in 2018.
The oil giant announced in June that it had put its British and German domestic energy business up for sale, exiting the household energy supply sector after just five years.
It followed a strategic review of the division under chief executive Wael Sawan, who was appointed in January this year.
In May, it was reported that Ovo and Centrica were among those also interested in bidding for the company.
Octopus said the deal would also ‘deepen the relationship’ between its EV chargepoint roaming service, and Shell Recharge stations.
The agreement, which has not yet been been approved, will see Octopus EV customers benefit from offers at Shell forecourts and Shell Recharge EV subscriptions.
What to do if you’re a Shell Energy customer
Now the deal is approved, Octopus will from today start to migrate Shell Energy customers. The migration is expected to be completed by the middle of next year.
Octopus said customers should ‘sit tight for now’ and they will be contacted in the coming days with encourage details.
In time they will be transferred to their new account with Octopus, together with their existing direct debits and all customer credit balances are protected. There will be no disruption to energy supply.
Octopus also said it would look after broadband customers as normal and there will be no interruptions to service.
A spokesperson for Octopus said: ‘There’ll be no change to Shell customer’s service, or the price they’ll pay. They will be able to use their Shell Broadband account just the same as they have up to now, and be able to contact Shell Energy Broadband customer service as usual.’