Octopus Energy Group today won a bidding contest to buy Shell Energy in the UK and Germany, taking on two million new home energy and broadband customers.
No price was disclosed for the purchase, which Octopus completed through Impello, a holding subsidiary of the oil super-major.
Today’s deal takes the seven year-old UK challenger to nearly 6.5 million household accounts here, or over 11 million meter points. In Germany, Octopus’ customer base will grow to almost 300,000 accounts.
Hydrocarbon behemoth Shell held a contest of suitors to its dowry of 1.4 million home energy customers in both territories, accounting for 2.5 million meter points – and 500,000 broadband customers.
Octopus is telling Shell Energy Retail customers to do nothing right now, and just sit tight. The new owner will contact them during 2023’s final three months, following expected approval from energy regulators in London and Berlin.
Octopus has a strong track record in large-scale customer migrations through its proprietary tech platform Kraken. The company recently completed the transfer of 1.5 million Bulb customers in just six months – an industry record –, all while maintaining its award-winning customer service levels.
Recent analysis by international management consultants Bain & Company found that Octopus Energy has the highest approval rating of any UK energy supplier.
For six years in a row, the company has won Recommended Energy Supplier status from UK consumer advocates Which? Octopus also recently topped Citizens’ Advice’s star ratings.
Octopus is headquartered in the UK and operates in 15 countries, with businesses in energy retail, generation, technology and electric vehicles. It has received well over $1bn in investment from global investors, including investment funds, pension funds and large energy companies.
On the Shell deal, founder and CEO Greg Jackson commented: “Octopus has proven that it delivers game-changing service whilst innovating and investing relentlessly towards a cheaper cleaner energy system.
“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.”