Major update over future of energy supplier with over 1million customers | The Sun
THERE'S a major update about the future of a big energy supplier with more than one million customers.
Octopus Energy is understood to be the front runner to buy Shell's domestic energy firm Shell Energy.
But nothing will change for customers during the sales process and it's important to note that the company is not going bust.
As first reported by Sky News, the two firms are discussing the potential sale which would make Octopus a rival to the UK's biggest energy supplier British Gas.
It comes after Shell confirmed that it was looking for a buyer back in June this year.
It's understood that other big name companies are still in the running to snap up the firm.
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A sale is thought to go through within a matter of months.
The 1.4million customers who have gas and electricity tariffs with the firm will continue to receive their services as normal.
Shell Energy does provide broadband to around 500,000 households and nothing will change for these customers during the sale process either.
It's thought that Greg Jackson, the founder of Octopus, would look to offload these broadband customers if the sale goes through, according to the report.
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The supplier expects to complete a deal in autumn but any buyout would be subject to usual regulatory approval.
When ownership of an energy supplier changes, customers are never left without energy and their services remain unaffected.
Affected customers are usually given several months' notice before their accounts are transferred over to the new supplier.
In a statement made in June, Shell said: "We are committed to supporting both customers and staff and protecting customer interests during this period, and to ensuring a seamless transfer to a buyer capable of delivering on its obligations, including our intent to maximise employment."
It was previously reported in March that Ovo Energy was plotting a takeover of Shell Energy.
In January, Shell said it was looking at options for the future of its UK energy supply business.
It came just five years after the home energy business was born out of Shell's acquisition of First Utility in 2018.
The Sun has contacted Octopus energy, but it declined to comment.
The last major supplier to place its domestic arm up for sale was SSE back in 2019.
SSE Energy Services which provided gas and electricity to 3.5million households was acquired by Ovo Energy in January 2020.
While in February 2023, Marks and Spencer announced that its M&S Energy brand would close in April.
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The news today comes just hours after energy regulator Ofgem confirmed the new price cap, which comes into effect on October 1.
The cap will fall from £2,074 to £1,923, the lowest figure since March 2022.
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