Fossil giant Shell has entered the UK industrial and commercial (I&C) power supply market.
Ofgem’s register of supply licence applications alerted market participants to the move some weeks ago.
Since then the company had refused to comment on its plans, citing a close period due to financial results. However the company today confirmed the move via a statement.
“The decision to offer power supply directly to end users in Great Britain’s industrial and commercial sector reinforces our strategy to boost our position in Europe’s electricity market,” said Jonathan McCloy, general manager North West Europe, Shell Energy Europe. “In addition to supplying Shell’s assets in Great Britain, we intend to supply power to other large industrial complexes from early next year.”
The firm has been active in power trading and wholesale markets in Great Britain for several years and said it will continue to provide wholesale gas and power to existing independent energy retail counterparties.
Shell’s move follows that of Vattenfall into the industrial and commercial markets, where some incumbents are struggling to turn a profit.
Related stories:
Swedish giant Vattenfall enters UK business energy market
British Gas business energy supply profits wiped out
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