Bristol energy firm looking to snap up rival’s domestic business

Bristol based Ovo energy is planning a takeover of Shell’s UK gas and electricity business – according to widespread reports.

The move would make the company, which was set up by entrepreneur Stephen Fitzpatrick, the second largest domestic energy provider in the UK.

Sky News is reporting that Ovo is expected to make offer for Shell Energy Retail Limited’s UK operation which has 1.4m energy customers within days.

If the deal goes through Ovo’s customer base would increase from 4m UK households to 5.4m.

Earlier this week Ovo became the first UK energy company to offer its first deal below the Government’s £2,500 cap on typical household bills

The move came as wholesale gas prices continue to fall.

The company is offering a one-year fixed tariff of £2,275 to existing customers, undercutting the Government’s energy price guarantee by £225.

Shell said in January that it was launching a review of its household energy supply business in the UK, Germany and Netherlands.

At the time it 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.

“We intend to provide an update on the outcome of the review, which is likely to take a number of months, in due course.”

The company is also looking to offload its broadband customer business.

An Ovo spokeswoman declined to comment on its interest in acquiring the Shell business. Shell also declined to comment.