Another oil giant that wants to sell us power

FRENCH oil major Total is splurging £1.2bn on a 74pc stake in French electricity retailer Direct Energie, the latest oil firm to see its future in the electricity market.

The deal will make it a major challenger in France to the state- owned market leader EDF.

Total entered the French retail power market in 2016 when it bought Belgium’s Lampiris, and the purchase adds 2.6m clients to its existing 1.5m.

Oil firms are increasingly moving into the electricity market amid a decline in demand for oil and growth of electric cars. Shell has bought First Utility’s retail supply business in the UK, while BP has been exploring selling electricity to businesses.

Total’s Patrick Pouyanne said: ‘This friendly takeover is part of the strategy to expand along the entire gas- electricity value chain and to develop low-carbon energies.’

The firm is targeting more than 6m customers in France and more than 1m in Belgium by 2022.

BP said it believes 30pc of kilometres travelled by passenger cars will be powered by electricity.