Ovo Energy is reportedly planning to take over the UK arm of Shell’s domestic energy supplier.
Sky News has reported that Bristol-headquartered Ovo is considering a move for Shell Energy Retail UK (SERL UK), which supplies around 1.4 million homes across Great Britain with gas and electricity.
SERL UK, which employs around 2,000 people in the UK, also has a broadband service which supplies around half a million customers.
According to the report Ovo – which itself has around four million customers – could table a bid for Shell Energy as soon as Wednesday (March 29).
Sky News added that Ovo would want to offload the broadband side of Shell Energy to another company.
Ovo and Shell Energy have declined to comment on the report.
Ovo recently announced a new fixed 12-month tariff for customers below the government’s current cap on household bills, as previously spiked whole gas prices begin to fall.
The company's reported interest in Shell Energy UK comes weeks after the oil giant launched a “strategic review” into the future of the business within its group
In January Shell said: “No decisions have yet been taken on the way forward and our priority remains to ensure our customers in those countries continue to receive a reliable and affordable energy supply, and to provide support for customers who are struggling with the cost of energy and wider cost-of-living pressures.
“We intend to provide an update on the outcome of the review, which is likely to take a number of months, in due course.”
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