Shell considers selling energy retail business in new strategic review
Shell has not ruled out the sale of its supplier business for households, after announcing a strategic review of its retail operations in the UK, Germany and Netherlands.
The energy retail business – known as Shell Energy – is a loss-making enterprise for the company, reflecting the industry landscape at large, where 30 suppliers have collapsed amid tough market conditions such as soaring wholesale costs.
Shell Energy is home to 1.4m household customers in the UK, alongside 110,000 in Germany and 15,000 in Netherlands.
The London-listed fossil fuel giant confirmed to Morning Wire the review is in line with its “Powering Progress” strategy, which focuses on maximising value for shareholders – and refused to rule out a sale of the business.
A spokesperson said: “No decisions have yet been taken on the way forward and our priority remains to ensure our customers in those countries continue to receive a reliable and affordable energy supply, and to provide support for customers who are struggling with the cost of energy and wider cost of living pressures.”
Shell intends to provide an update on the outcome of the review in the near future, with the audit expected to take a number of months.
The company’s business supplier arm is not included in the review, and is a separate company to its household-focused entity.
“We remain committed to our integrated business model that produces, buys, trades, transports and sells energy around the world. Our wholesale and B2B energy supply businesses are out of scope for this strategic review, as are our home energy supply businesses in the US and Australia,” the spokesperson explained.
However, Shell’s 500,000 UK broadband and landline customers – which are part of Shell Energy – will be included in the review, meaning they would be sold off to another provider alongside the energy customers.
The telecommunications arm is currently in the crosshairs of Ofgem, which has urged Shell Energy to “get a grip” on broadband and landline complaints, after the firm attracted significantly higher numbers than other providers in the watchdog’s latest quarterly survey.