Oil giant shells out for energy provider

Energy provider First Utility has been bought by Shell as the oil giant moves into the UK residential market for the first time.

First Utility is the largest rival to the established “big six” providers and has grown rapidly since it was founded in 2008.

It now employs 1,500 people at its Warwick, Coventry and London offices.

Darren Braham, co-founder and CFO, First Utility said: “Shell has been our strategic trading partner for a number of years and we are excited about the extra value and propositions we can deliver to customers as a result of this sale.

“First Utility has brought significant disruption and competition to the energy market and this move will help us to capitalise on all the opportunities provided by digitalisation, decarbonisation and the move to battery technology and electric vehicles.”

First Utility will continue to operate as a stand alone entity, and will sit within Shell’s new energies division.

The deal is for an undisclosed sum but has been estimated as being worth up to £300m.

Mark Gainsborough, Shell’s executive vice president of new energies, added: “The supply and demand of residential energy is rapidly changing, driven by new technologies that enable householders to better manage their energy use, and the need for a low-carbon energy system.

“This combination will enable Shell to enter a new part of the energy market in the UK and to improve choice for customers by delivering innovative services at competitive prices.”