Shell enters the domestic energy market

Lloyd Doyle
December 21, 2017

It is headquartered in Coventry, with bases in Warwick and London. Shell noted that a previous licensing agreement in 2015 allowed First Utility to operate in the German household-energy sector under the Shell brand.

Royal Dutch Shell PLC (RDSA.LN) said Thursday that it has agreed to acquire United Kingdom household-energy and broadband provider First Utility Ltd. for an undisclosed price.

First Utility co-founder and chief financial officer Darren Braham said the acquisition will allow the firm to develop more innovative new services for its customers, including capitalising "on all the opportunities provided by digitalisation, decarbonisation and the move to battery technology and electric vehicles".

Shell operates in the wholesale energy market, but this is the first time it will provide utilities directly to people's homes.

Mark Gainsborough, Shell's executive vice president of new energies, said in an interview that First Utility fit the company's strategy of growing in various parts of the electric power business, an energy sector that has seen great change in recent years.


"This combination will enable Shell to enter a new part of the energy market in the United Kingdom and to improve choice for customers by delivering innovative services at competitive prices", he added.

"This combination will enable Shell to enter a new part of the energy market in the United Kingdom and to improve choice for customers by delivering innovative services at competitive prices", said Mark Gainsborough, Shell's executive vice president of new energies.

"Our strategy in new energies is to build a stronger position in the power business", Mr. Gainsborough said.

The deal, which was announced for an undisclosed sum, is expected to complete in early 2018.

Other reports by Iphone Fresh

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