Shell agrees deal for residential energy supplier First Utility
In a move that could challenge the household energy Big Six, Shell has announced that is buying energy and broadband provider First Utility. Serving around 825,000 homes, First Utility has a 3% market share of the UK residential energy market. This deal builds upon a preexisting relationship: Shell supplies wholesale gas and electricity to First Utility, and in 2015 a licensing agreement between Shell Brands International and First Utility enabled them to operate in the German household energy sector under the Shell brand. Following this acquisition, Shell Energy Europe Limited would continue to supply wholesale gas and electricity to other energy retailers in the UK and Europe. The deal also includes First Utility’s German subsidiary, First Utility GmbH.