Shell could take on Big Six under own brand
Energy giant Shell could move to take on the “Big Six” domestic energy suppliers in the UK under its own brand.
The company confirmed that using the “Shell” brand for its new domestic supply operations was one of the options currently being examined.
Shell acquired residential energy supplier First Utility last month in a deal thought to be worth £200m.
Read more: Shell completes its deal for First Utility with Colin Crooks at the helm
First Utility already operates in the German household energy market under Shell's brand via a licensing agreement signed in 2015.
First Utility, which serves around 825,000 homes in the UK, is now a subsidiary of Shell within its new energies division.
Shell has appointed Colin Crooks, previously vice president of downstream strategy and portfolio, as First Utility’s chief executive.
The acquisition of First Utility is part of Shell’s strategy to sell its products across the energy chain.
Shell already sells energy to industrial and commercial customers, in addition to motorists via its petrol station network.
Shell’s move into the UK’s domestic energy market comes at a turbulent time for the sector, with the government bringing forward a bill last month that would give energy regulator Ofgem the power to cap expensive energy tariffs.
Read more: The energy secretary has asked Big Six firms not to challenge the price cap
The “Big Six” (British Gas, EDF Energy, Npower, E.On, Scottish Power and SS) have faced criticism for overcharging and providing customers with confusing tarrifs.
Rachel Reeves, chair of the Business, Energy and Industrial Strategy (BEIS) Select Committee, said that the cap “is urgently needed to help fix the broken energy market and protect consumers”.