Shell energy

Montybell1

Why doesn’t shell energy have lower tariffs for customers when they they produce oil & gas themselves, they sell what they produce on whole sale market then keep prices on maximum level of price cap, this seems like profiteering to me 

la531983

Erm, well no, Shell Energy Retail Limited is totally seperate to the Shell who do the mining. 

Dolor

Shell Energy is an international company which earns just 5% of its profits in the UK. Its biggest investor is Black Rock Investments that might have something to say if Shell started selling energy at below global market prices. Shell Energy Retail UK is currently up for sale due, in part, to recent losses.

I know that profit to some is a dirty word but profit equals taxes to Governments around the World.

QrizB

Is there an echo in here?

OP asked exactly the same thing yesterday:

https://forums.moneysavingexpert.com/discussion/comment/80248986/#Comment_80248986

Montybell1

How convenient it’s a separate company can use it as a loss leader on there tax breaks, it’s amazing how all theses companies don’t make money must be doing it for fun 

matt_drummer

Montybell1 said:

How convenient it’s a separate company can use it as a loss leader on there tax breaks, it’s amazing how all theses companies don’t make money must be doing it for fun 

It's for sale, you could buy it for very little I suspect.

I just hope you've deep pockets for the losses coming your way.

Dolor

Montybell1 said:

How convenient it’s a separate company can use it as a loss leader on there tax breaks, it’s amazing how all theses companies don’t make money must be doing it for fun 

Why wouldn’t it be a separate company? Shell Energy Retail UK is regulated by Ofgem whereas Shell Energy is trading in numerous international jurisdictions.  There are also sound business risk reasons for setting separate trading entities.

Take Octopus Energy for example:

‘10 businesses in 14 countries across 4 continents. We serve more than 5 million domestic customers, over 40,000 business customers, with 30 million contracted accounts for our entech platform, Kraken.’

The businesses include renewable electricity generation; EV sales and a technology platform. All separate business entities.