{"id":2783,"date":"2019-03-27T15:05:53","date_gmt":"2019-03-27T15:05:53","guid":{"rendered":"http:\/\/euromenaenergy.com\/?p=2783"},"modified":"2019-03-27T15:05:53","modified_gmt":"2019-03-27T15:05:53","slug":"shell-makes-aggressive-move-into-uk-retail-power-market","status":"publish","type":"post","link":"https:\/\/emimer.com\/?p=2783","title":{"rendered":"Shell makes aggressive move into UK retail power market"},"content":{"rendered":"
\n

Bloomberg\/London<\/p>\n<\/div>\n

Royal Dutch Shell Plc took a step forward in its aim to become the world\u2019s biggest power company with an aggressive move into the UK retail market by offering one of the cheapest tariffs available.
\nShell Energy, formerly known as First Utility Ltd, said yesterday it has a fixed rate power-supply tariff for UK customers of about \u00a3970 ($1,278) a year, or about 81 pounds a month until July 2020. The move is part of its rebranding of its UK utility business.
\nThis undercuts former cheapest UK power supplier Bulb Energy Ltd, which has a deal available for \u00a3981 a year, and is around 18% cheaper than power supplied by Centrica Plc-owned British Gas, according to data from UK power regulator Ofgem.
\nShell plans to become the world\u2019s biggest power company within 15 years and is spending as much as $2bn a year on its new-energies division, a move that suggests it sees climate change as a significant threat to the fossil fuel business.
\n\u201cShell has been increasingly vociferous about its ambitions in electricity markets, and we see it as a significant competitive\/disruptive force over the coming years for traditional utility energy suppliers\/retailers,\u201d RBC Capital Markets LLC said in a note yesterday.
\nThe bank said Shell\u2019s plan to invest about $1bn-$2bn a year on its new energies division is only 5% of the company\u2019s annual capex and \u201chence has significant room to grow.\u201d It added that it\u2019s \u201cdifficult to rule out\u201d Shell buying other UK-based utilities such as the retail unit of SSE Plc or Npower Ltd, which are both up for sale.
\nThe move will bring yet more pressure to the UK power market which has seen swaths of customers abandon the traditional Big Six utilities for smaller, cheaper suppliers. Surging wholesale prices for power and gas have driven several companies out of business. Last year, more businesses folded than in the previous 16 years combined. Brilliant Energy, which has about 17,000 domestic customers, became the 10th firm to cease trading in the past 12 months on March 11.
\nBritsh Gas, which lost 742,000 customers last year, held a 19% share of the UK\u2019s electricity market in the third quarter of 2018, according to Ofgem. Bulb, which has about 1mn customers, had a 3% stake in the market.
\nAs well as announcing the rebranding, Shell also said it has switched its existing 700,000 UK customers to power supplied entirely by renewable sources of energy such as wind, solar and biomass.
\n\u201cShell recognises the world needs more energy with lower emissions and this will give customers more flexibility, greater control and cleaner energy,\u201d said Mark Gainsborough, executive vice president of Shell New Energies US LLC.
\nNewly rebranded Shell Energy will also offer a range of smart home devices, such as thermostats, and discounts on home electric vehicle chargers for its customers.
\n\u201cWe are building on the disruptive nature of First Utility to give customers something better,\u201d said Colin Crooks, chief executive officer of Shell Energy Retail Ltd. \u201cWe know that renewable electricity is important to them and we are delivering that, while ensuring good value and rewarding loyalty.\u201d
\nAlongside First Utility, Shell has made other acquisitions in power including car-charging operator NewMotion and a stake in US solar company Silicon Ranch Corp. It has also announced it\u2019s bidding for Dutch utility Eneco Group NV, which provides low-carbon power to industrial users and offers apps and other technology to manage electricity consumption. Shell also entered a bid to expand an offshore wind farm in the Netherlands.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bloomberg\/London Royal Dutch Shell Plc took a step forward in its aim to become the world\u2019s biggest power company with an aggressive move into the UK retail market by offering one of…<\/p>\n","protected":false},"author":1,"featured_media":2798,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[46,48,57,90,96,107,113,137,139,160,174,183,184,201,202,209,230,232,233,244,246,249,256,267,277,279,288],"class_list":["post-2783","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-aramco","tag-athens","tag-baroudi","tag-democracy","tag-doha","tag-embargo","tag-energy-peace","tag-gas","tag-gazprom","tag-international-maritime-disputes","tag-lebanon","tag-maritime-boundaries-east-mediterranean","tag-maritime-disputes","tag-offshore","tag-oil","tag-opec","tag-poverty-alleviation","tag-putin","tag-qatar","tag-rosneft","tag-roudi","tag-russia","tag-saudi","tag-straddling-hydrocarbons-reserves","tag-total","tag-trump","tag-usa"],"_links":{"self":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/2783","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2783"}],"version-history":[{"count":0,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/2783\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/media\/2798"}],"wp:attachment":[{"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}