Shell to provide housing energy
Already a major supplier of energy in the form of petroleum and auto gas, Shell have started to make the move into providing households across the UK with energy. In a recently agreed deal Shell will buy energy supplier First Utility, enabling the business to gain the market knowledge and customers of an already established energy provider.
With a customer base of 825,000 homes, Shell provide these new customers with gas, electricity or broadband. Shell is already active in the wholesale energy market, but this is the first time it will supply UK homes directly.
First Utility will be owned by Shell's New Energy division, which focuses on low carbon generation.
"This combination will enable Shell to enter a new part of the energy market in the UK and to improve choice for customers by delivering innovative services at competitive prices," said Mark Gainsborough, Shell's executive vice president of new energies.
Darren Braham, co-founder and chief financial officer of First Utility, said: "Shell has been our strategic trading partner for a number of years, and we are excited about the extra value and propositions we can deliver to customers as a result of this sale."
Shares in Shell dumped by 1% following the announcement.