Shell Energy considering quitting market

[Deleted User]

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.

It really doesn’t matter what any of us think. Shell Retail is a loss-marking energy and broadband supplier and it reports separately from its parent company. If the Shell Company board believe it has become a distraction to the company’s main activities, then they will sell on the customer base and close down the company. This is how business works.

I worked for a service-delivery company 15 years ago that had 5 parent companies each with a profit share. Two of 5 original companies have sold on their shares to others - presumably, as the result of business reviews - despite the fact that ServiceCo has delivered a very healthy profit for the last 10 years. ServiceCos are set up to manage the risk to the parent company should the venture fail.

EssexHebridean

I was briefly (a year) with the broadband side -service was OK, connection did what it promised and was fairly stable. On leaving though - due to a steep price increase and a good introductory offer from Vodafone at the time - Shell didn’t perform well at all, repeatedly trying to incorrectly take money from my bank account for a non returned router in spite of having confirmed it had been returned. It got sorted in the end, but it put me off dealing with them again, and meant that I also disregarded them for energy purposes. It’s small glitches like that which can impact across a business IMO, as it puts customers off returning when prices mean they might, and also means that they will tend not to recommend to others, at least without caveats. 

On the issue of “parent companies” - people might try thinking of it as - what if your parents were rich, but you had been determined from an early age to live life on your own terms, without falling back on their wealth. Would it feel fair if when you saved hard to buy a house, or a car, everyone just said “well it’s easy for you because of your Mum and Dad?!” - no, because you are a stand-alone entity and their money is not your money. 

markin

EssexHebridean said:

I was briefly (a year) with the broadband side -service was OK, connection did what it promised and was fairly stable. On leaving though - due to a steep price increase and a good introductory offer from Vodafone at the time - Shell didn’t perform well at all, repeatedly trying to incorrectly take money from my bank account for a non returned router in spite of having confirmed it had been returned. It got sorted in the end, but it put me off dealing with them again, and meant that I also disregarded them for energy purposes. It’s small glitches like that which can impact across a business IMO, as it puts customers off returning when prices mean they might, and also means that they will tend not to recommend to others, at least without caveats. 

On the issue of “parent companies” - people might try thinking of it as - what if your parents were rich, but you had been determined from an early age to live life on your own terms, without falling back on their wealth. Would it feel fair if when you saved hard to buy a house, or a car, everyone just said “well it’s easy for you because of your Mum and Dad?!” - no, because you are a stand-alone entity and their money is not your money. 

More like hunter Biden renting a house from Biden for 500X the rent for the area, Its a transfer of wealth. It was proven to be a clear case with EDF by a C4 Dispatches investigation around 2010.


In the case of Shell wasn't that a push for Green energy, car chargers, and hydrogen, And seen as good PR for the parent company even at a loss.

Grandad2b

prowla said:

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.

Absolutely. But that didn't stop BP from pulling the plug on Pure Planet.

Chrysalis

MattMattMattUK said:

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.

Quite easy, shell energy has a parent company, I think you know this though.

Silverbird65

So what happens to us poor customers?

CSI_Yorkshire

Silverbird65 said:

So what happens to us poor customers?

You use one of the several other suppliers?

luvchocolate

I've just switched to Octopus...

GunJack

luvchocolate said:

I've just switched to Octopus...

#meetoo

[Deleted User]

Silverbird65 said:

So what happens to us poor customers?

It is a sale of assets. Customer accounts have a value. If, say, Octopus buys Shell Retail then you would become an Octopus customer with no break in supply.