New bundle of energy...
Shell and First Utility in fuel merger
OIL giants Shell are to begin selling gas and electricity to homeowners.
The £200billion company are moving 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 they look to reduce their 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 have been buying their wholesale gas and electricity through Shell since 2013.
First Utility co-founder Darren Braham will 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 seven per cent to £908million, but they swung from a £1.6million profit to a near £13million 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.
New Energies vice-president Mark Gainsborough 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.” CONSUMER confidence rose this month but still remains low. An index produced by YouGov and the Centre for Economics and Business Research measured 107.5 in December – with anything above 100 showing more people are feeling confident than pessimistic about finances. The level is up from 106.4 last month but is still the fourth lowest reading since the Brexit vote.