Octopus Energy Group has today signed a deal with Shell subsidiary Impello Limited to buy the oil and gas giant’s domestic energy supply business in the UK and Germany, paving the way for the company to take on an additional two million home energy and broadband customers.

The deal, which is subject to regulatory approval, is expected to complete in the fourth quarter of 2023 and increase Octopus Energy’s retail supply arm to 6.5 million customers and more than 11 million meter points in the UK, while also boosting its German operation to almost 300,000 customers.

According to this morning’s announcement, all Shell Energy domestic gas, power, and broadband customers will be contacted about the next steps following regulatory approval, with customer credit balances protected and automatically transferred to new Octopus accounts alongside existing direct debits. 

Moreover, a statement from Shell confirms current tariffs and offers will remain unchanged for all existing home energy customers, including continued access to 100 per cent renewable power.

The deal – financial details for which were not disclosed – follow’s Octopus recent transfer of an industry record 1.5 million Bulb customers to its Kraken tech platform, following the acquisition of the failed supplier.

Alongside the deal, Shell and Octopus Energy announced they have signed a memorandum of understanding to explore a potential international partnership designed to improve the EV charging customer experience for Shell Recharge and Octopus Electroverse subscribers.

Options will also be explored for possible joint promotions, brand activations and other activities across the EV value chain, the companies said.

Greg Jackson, CEO and founder of Octopus Energy Group, said the firm was pleased to acquire Shell Energy Retail in the UK and Germany following a “stringent” process.

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

Steve Hill, executive vice-president at Shell Energy, added that the agreement delivers on the company’s decision earlier this year to divest it 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,” he said. “We will work closely with Octopus to ensure a seamless transition and continued high standards of customer service.” 

The deal marks Octopus latest European expansion after it announced plans to invest €1bn in the French green energy market and create a new European clean tech hub at March’s Franco-British Summit chaired by Prime Minister Rishi Sunak and French President Emmanuel Macron.

The retailer claimed the move would support its ambitions to reach one million customers in France by 2026 and generate enough local green power to supply 300,000 households.

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