Shell Energy considering quitting market

Shedman

Article in The Times business section today suggesting Shell are reviewing whether to sell off the domestic energy supply / broadband business (i.e. Shell Energy Retail)  due to the heavy losses of around £300 million in the 5 years since they acquired First Utility.   

https://www.thetimes.co.uk/article/shell-mulls-exit-from-uk-household-energy-market-bj62q2frr

(Link might be behind a paywall)

[Deleted User]

Watch this space. I can see a raft of posts angry at the fact that ‘I have been switched to A N Other supplier without my consent’ if this was to happen.

All contract terms and conditions give suppliers the right to make business changes.

MattMattMattUK

I wonder how all the loons/conspiracy nuts will square this with the fact that they claim energy suppliers are profiteering/a license to print money/making huge profits, or will they just continue trying to tell everyone that up is down, north is south and that they could not possibly be wrong because they read it on reddit/the Daily Mail/Bob in the pub told them.

GunJack

Shedman said:

https://www.thetimes.co.uk/article/shell-mulls-exit-from-uk-household-energy-market-bj62q2frr

(Link might be behind a paywall)

yes. it is behind a paywall...

I wonder if their lack of billing for almost 2 months is due to them "re-assessing their options"????

Gerry1

Shell aren't doing too well...

Ofcom tells Shell Energy to ‘get a grip’ on broadband and landline complaints

Londoner_1

I remember about 6 years ago, FU had agents selling 10 year fix deals when they were about to be rebranded to Shell Energy

markin

This is not a new story on Shell, it gets repeated often. And Isn't 'UK Octopus' also a loss making company?

They all funnel money away to parent companies, It would be the odd man out if Shell didn't also.

MattMattMattUK

markin said:

This is not a new story on Shell, it gets repeated often. And Isn't 'UK Octopus' also a loss making company?

They all funnel money away to parent companies, It would be the odd man out if Shell didn't also.

Not any more on an ongoing basis. Octopus was originally in start up phase and that was down to two things, pushing for market share and being primarily a software company, just as Ocado is not a food delivery company but a tech company even though people think of it as a grocery retailer.

Octopus was making money until the government forced it and the other energy companies to sell below cost and it is now profitable again, but it's major profit centre going forward, far more than the capped 2% on energy is licensing the Kraken billing platform. It has signed up EDF as well as others internationally and more deals are in the pipeline. It will also be a much larger energy supplier as it is now the fourth largest and expected to rise to third in the next 12-18 months.

[Deleted User]

markin said:

This is not a new story on Shell, it gets repeated often. And Isn't 'UK Octopus' also a loss making company?

They all funnel money away to parent companies, It would be the odd man out if Shell didn't also.

According to BBC Midlands Today, Shell Retail Energy staff were briefed yesterday that there is an ongoing restructuring study into Shell Retail’s operations that will take a few months. It is more than a ‘rinse and repeat’ exercise.

prowla

MattMattMattUK said:

markin said:

This is not a new story on Shell, it gets repeated often. And Isn't 'UK Octopus' also a loss making company?

They all funnel money away to parent companies, It would be the odd man out if Shell didn't also.

Not any more on an ongoing basis. Octopus was originally in start up phase and that was down to two things, pushing for market share and being primarily a software company, just as Ocado is not a food delivery company but a tech company even though people think of it as a grocery retailer.

Octopus was making money until the government forced it and the other energy companies to sell below cost and it is now profitable again, but it's major profit centre going forward, far more than the capped 2% on energy is licensing the Kraken billing platform. It has signed up EDF as well as others internationally and more deals are in the pipeline. It will also be a much larger energy supplier as it is now the fourth largest and expected to rise to third in the next 12-18 months.

I don't buy the "poor little me" stance with regards Shell, as they are a gas producer too and therefore they are making huge profits from the gas they sell to themselves.

MattMattMattUK

prowla said:

MattMattMattUK said:

markin said:

This is not a new story on Shell, it gets repeated often. And Isn't 'UK Octopus' also a loss making company?

They all funnel money away to parent companies, It would be the odd man out if Shell didn't also.

Not any more on an ongoing basis. Octopus was originally in start up phase and that was down to two things, pushing for market share and being primarily a software company, just as Ocado is not a food delivery company but a tech company even though people think of it as a grocery retailer.

Octopus was making money until the government forced it and the other energy companies to sell below cost and it is now profitable again, but it's major profit centre going forward, far more than the capped 2% on energy is licensing the Kraken billing platform. It has signed up EDF as well as others internationally and more deals are in the pipeline. It will also be a much larger energy supplier as it is now the fourth largest and expected to rise to third in the next 12-18 months.

I don't buy the "poor little me" stance with regards Shell, as they are a gas producer too and therefore they are making huge profits from the gas they sell to themselves.

You are conflating two separate companies, Shell Energy Retail Ltd is not Shell PLC.