New bundle of energy...

Shell and First Utility in fuel merger

OIL giant Shell is to begin selling gas and electricity to homeowners.

The £200billion company is breaking into the UK’s home energy market after snapping up First Utility, the country’s seventh biggest supplier, for an undisclosed amount.

The deal marks a big shift for Shell as it looks to reduce its reliance on oil.

But it comes amid a big shakeup, with SSE and npower hoping to merge and a governmentproposed cap on rip-off energy tariffs set to hit suppliers’ profits.

First Utility has been buying its wholesale gas and electricity through Shell since 2013.

First Utility co-founder Darren Braham is set to be among those quids in from the sale. He said: “The deal will enable us to grow.”

Coventry-based First Utility’s customer numbers have stalled at 825,000, despite smaller rivals pinching business from the Big Six suppliers. Revenues rose 7% to £908million, but it swung from a £1.6m profit to a near £13m loss last year. The deal is set to complete early next year, subject to regulatory approval. First Utility will operate as a stand-alone entity as part of Shell’s New Energies division. Mark Gainsborough, Shell’s executive vice president of New Energies, said: “This combination will enable Shell to enter a new part of the energy market in the UK and to improve choice for customers by delivering innovative services at competitive prices.”