{"id":34672,"date":"2023-06-06T13:58:00","date_gmt":"2023-06-06T12:58:00","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=34672"},"modified":"2023-06-06T13:58:00","modified_gmt":"2023-06-06T12:58:00","slug":"shell-puts-for-sale-sign-over-uk-broadband-isp-shell-energy","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/06\/shell-puts-for-sale-sign-over-uk-broadband-isp-shell-energy.html","title":{"rendered":"Shell Puts FOR SALE Sign Over UK Broadband ISP Shell Energy"},"content":{"rendered":"

The parent company of UK retail energy and broadband provider Shell Energy<\/a> has announced their intention to sell the company, which follows a major “strategic review<\/em>” of the business that was launched in January 2023 due to “tough market conditions<\/em>“. Reports claim that Ovo and Octopus Energy may have already placed bids.<\/p>\n

Firstly, it should hopefully go without saying that Shell Energy<\/a>, much like many other retail providers in the energy space, has faced more than a few challenges over the past year or two (e.g. they lost almost \u00a3220m across 2020 and 2021). Such challenges have already caused the collapse of various rival operators in the same market, and Shell are by no means immune to those problems.<\/p>\n

NOTE:<\/strong> Shell Energy UK is home to around 595,000 broadband and phone customers, as well as 1.4 million energy users. Some 2,000 UK people work for the division.<\/div>\n

At the same time, energy provision has always been the provider’s main business, with broadband arguably being more of a side-show to aid customer retention. Not to mention that their telecoms division has been consistently topping Ofcom<\/a>\u2019s quarterly consumer complaints tables for well over a year (here<\/a>). But tackling such problems would require more investment, which appears to be something that Shall just isn’t willing to do.<\/p>\n

Shell has thus today confirmed that Shell Energy is to be sold (excluding the linked B2B Wholesale and SME customer supply business). A spokesperson for Shell said: “A sales process is already under way, with the intent to reach an agreement with a potential buyer in the coming months. Deal completion would be subject to the usual regulatory and other approvals<\/em>.”<\/p>\n

Multiple reports similarly allege that both Ovo<\/strong> and Octopus Energy<\/strong>, among other interested parties, may have already tabled bids. But such a deal could potentially also result in their telecoms customers being sold off, at a later date, to another ISP. Something similar happened when Ovo acquired SSE last year and then later sold their retail broadband base on to TalkTalk<\/a> (here<\/a>). But Shell Energy is a much larger player.<\/p>\n

“We are committed to supporting both customers and staff and protecting customer interests during this period, and to ensuring a seamless transfer to a buyer capable of delivering on its obligations, including our intent to maximise employment<\/em>,” said Shell’s spokesperson.<\/p>\n","protected":false},"excerpt":{"rendered":"

The parent company of UK retail energy and broadband provider Shell Energy has announced their intention to sell the company, which follows a major “strategic review” of the business that was launched in January 2023 due to “tough market conditions“. 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