Image: Octopus Energy CEO Greg Jackson at the firm's heat pump centre in Berkshire | Credit: Octopus Energy
In a groundbreaking move, Octopus Energy Group has inked an agreement with Impello Limited—a subsidiary of the global energy titan Shell—to acquire its residential energy and broadband business in both the United Kingdom and Germany. This strategic move sets the stage for Octopus to bolster its customer base by an eye-popping two million households.
Pending the regulatory green light, the deal is projected to wrap up in Q4 of 2023. When it does, Octopus Energy's retail customer base is set to swell to an impressive 6.5 million accounts, with over 11 million meter points sprinkled throughout the UK. Don't overlook their German operations; they're on track to ramp up to nearly 300,000 customers.
According to the morning's official press release, existing Shell Energy customers—spanning gas, electricity, and broadband—won't be left in the dark. They'll be looped in on all ensuing steps once the regulatory approvals come through. That's not all: their credit balances and ongoing direct debit setups will transition smoothly into their new Octopus accounts.
Shell isn't budging on existing rates or special offers. Whether you've been enjoying 100% renewable energy or a different package, expect business as usual post-acquisition.
While the purse strings behind the deal remain tightly drawn, it's important to note this isn't Octopus' first high-profile acquisition rodeo. They recently absorbed a record 1.5 million customers from Bulb via their state-of-the-art Kraken tech platform after the latter company folded.
Now, get this: alongside this deal, Shell and Octopus aren't just shaking hands and parting ways. They've penned a memorandum of understanding that signals an exploration into an international alliance. Their aim? To elevate the electric vehicle charging experience for Shell Recharge and Octopus Electroverse users. Joint branding events and promotions across the electric vehicle arena are also on the table, the companies disclosed.
Octopus' Founder and CEO, Greg Jackson, praised the acquisition of Shell Energy Retail in the UK and Germany as the outcome of a "rigorous" evaluation process. "Octopus has consistently pushed the envelope in customer service while driving relentless innovation towards greener, more cost-efficient energy systems," he emphasized.
Steve Hill, the Executive Vice-President of Shell Energy, indicated that the move aligns perfectly with Shell's decision to sell off its domestic energy retail arms in Europe. "We're focusing on the spaces where we can truly excel and add value," Hill pointed out. "Octopus is a natural partner to ensure a smooth transition and uphold high customer service standards."
This Shell deal comes hot on the heels of Octopus' recent pledge to invest a staggering €1 billion in France's green energy market. Announced at the Franco-British Summit spearheaded by UK Prime Minister Rishi Sunak and French President Emmanuel Macron, Octopus aspires to power up 300,000 households in France by 2026.
Long story short, Octopus Energy Group is making waves, and this Shell deal is the latest ripple in what's fast becoming a green energy tsunami.