The Netherlands-based oil & gas major, Royal Dutch Shell, has made it to the front page for rebranding the British household power supplier, First Utility, which it acquired around a year ago, as Shell Energy. The Anglo-Dutch company is reportedly endeavoring to switch its customers to renewable electricity, in a move to scale up its low-carbon business.
Sources familiar with the development claim that the latest move by Shell stands out as a challenge to all the long-standing power suppliers in Britain that have their profit margins under heavy pressure owing to the regulator’s price cap as well as intense competition. Sources added that First Utility, which has been rebranded as Shell Energy and holds a customer base of around 710,000, is currently joining several energy companies including Octopus Energy and Bulb, in a bid to provide 100 percent renewable electricity.
Colin Crooks, Chief Executive Officer, Shell Energy, was reported saying that the company is currently developing a disruptive nature similar to First Utility’s, which always tends to provide customers with something better. The company is looking forward to delivering renewable electricity that is significantly important, Crooks added.
As per a report by The Sun, Energy expert at Energyhelpline, Victoria Arrington, estimated the rebranding to drive high competition in the market. She added that the rebranded Shell will be offering competitive tariffs, along with an offer that is currently among the cheapest energy deals in the United Kingdom.
Reportedly, Shell is strategizing to attract more customers to Shell Energy by offering a discount of 3 percent on fuel across all its petrol stations and further, offering discounts for EV (electric vehicle) charging. The company allegedly obtains its electricity from renewable sources such as solar, wind or biofuels. It will expectedly invest about $1 to $2 billion each year, which is around 5 percent of its total spending, in its low-carbon and renewable businesses, to keep up with the rapidly growing demands.