Octopus gains 500,000 new broadband customers from Shell acquisition
Octopus Energy Group has completed its acquisition of Shell Energy Retail in the UK and Germany (m&a/Shutterstock.com)
Octopus Energy Group has completed its acquisition of Shell Energy Retail in the UK and Germany from Impello, a subsidiary of Shell Petroleum Company.
Octopus is headquartered in the UK and operates in 17 countries, with significant businesses in energy retail, generation, technology, heat pumps and electric vehicles. It has received more than £1bn in investment from global firms, including investment funds, pension funds and large energy companies.
Branching into broadband
Earlier this year, Octopus Energy Group landed its first broadband deal by licensing to independent internet service provider (ISP), Cuckoo. This followed the launch of Kraken Utilities, part of the Octopus Energy Group which was created to take Kraken to utilities beyond energy, such as broadband and water.
The acquisition agreement with Impello was announced in September and comprises the sale of the shares in the respective businesses which have approximately two million customers. Upon completion on 1 December, Octopus started migrating 1.3 million home energy customers to its systems in the UK and Germany, with work expected to be completed in mid 2024. This will grow Octopus to 6.6 million household customers in the UK (more than 11 million meter points). Its customer base in Germany will grow to almost 300,000. As part of the deal, Octopus has also acquired almost 500,000 Shell broadband customers.
Octopus has a history of large-scale customer migrations via Kraken, and has already operated over 30 since launch. To ensure a smooth transition, customers are advised to not switch midway through the migration process as this could affect their service and move to their new energy supplier.
Greg Jackson, founder of Octopus Energy Group, comments: “We are pleased to be the new home for Shell Energy Retail customers in the UK and Germany. Now even more customers can receive our five star customer service and choose from a whole heap of cheap, green tariffs, benefitting both their pockets and the energy system. Our commitment to customers is paramount, and we will deliver the Octopus promise when we welcome these new customers too.”