Ovo Energy May Acquire Shell Energy’s UK Customer Base

Utility provider Ovo Energy, which only recently sold off SSE’s phone and broadband customers to ISP TalkTalk (here), is reportedly now looking at a deal to acquire Shell’s domestic UK gas, electricity and broadband business (Shell Energy) – home to c. 1.4m energy and 500,000 internet customers.

The move is not strictly all that surprising because we reported, back in January 2023, that Shell Energy could be facing an uncertain future after their parent company (Shell) launched a “strategic review” of the business due to “tough market conditions” (here). One of the options on the table reportedly included an exit from the sector.

According to Sky News and its various industry sources, Ovo could be preparing to place a bid as soon as this afternoon in order to meet an informal deadline set by Lazard, which is said to be overseeing the process on Shell’s behalf. But Centrica, the owner of British Gas, is also said to be sniffing around the supplier. Octopus Energy may also have an interest.

However, given Ovo’s previous strategy, it seems highly likely that any acquisition might ultimately end up with Shell Energy’s broadband base being sold off again in the same way as they did with SSE last year. As usual, nobody is willing to comment on the market speculation.