Shell could take on the Big Six

Shell could take on the Big Six

Energy giant Shell could start competing with the Big Six domestic energy suppliers following the acquisition of First Utility last month in a deal said to be worth £200 million.

Shell has said that using its own brand for its new domestic energy venture was one option currently being assessed.

First Utility, which currently serves approximately 825,000 UK households in the UK, already operates in the German domestic energy market under Shell’s brand through a licensing agreement from 2015.

Shell’s acquisition of First Utility comes as part of the Dutch company’s plans to sell its products across the energy chain.

The decision to enter the domestic energy market comes during a rough time within the sector as the UK government recently introduced legislation that will allow energy regulator Ofgem to put a price cap on standard variable tariffs (STVs).

Meanwhile, Britain’s Big Six energy firms saw the biggest fall in market share during 2017, as smaller rivals became increasingly attractive with cheaper deals, according to energy regulator Ofgem.

 

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