Octopus Energy Buys Shell Energy
In a deal that affects 1.3 million energy customers, Octopus Energy has taken over Shell Energy, making it the second largest energy firm in the UK. British Gas still remains at the top spot. In the next few months, the process of switching will be finalised. The good news is that customers won’t have to do anything.
After all Shell’s customers move over, Octopus will have an impressive 6.6 million customers in the UK. In Germany, the firm is expanding to almost 300,000 homes.
How Billing Might Change
Shell customers were used to receiving monthly bills, regardless of whether a meter reading had been given. If you don’t submit meter readings every month, Octopus will send you an estimated bill every three months. Shell used to send them every four weeks.
The preferred way of Octopus to bill its customers is through accurate usage. This can either be done through smart meters or monthly readings. If this isn’t done, then estimated energy use will be sent through instead.
When Will Shell Customers Become Octopus Customers?
Some customers have already been switched, but others will have to wait a few months. The deal was finalised in December last year. Over 1 million people have been transferred already, but around 300,000 remain.
As a benchmark, when Octopus took on Bulb’s customers, it took six months for all accounts to be switched over.
Will Energy Bills Change?
If you were on a variable tariff, you won’t see any change in your energy bills. This is because all energy providers are dictated by Ofgem’s energy price cap. The only time you’ll notice a difference is if the price cap moves up or down. In April, this will lower to an average of £1,690.
If you were a Shell customer on a fixed tariff, your bills will remain at this fixed amount until the end of the deal. Unless you move to another fixed deal, you will then switch over to the default variable tariff.
Similarly, if you have any credit on your Shell account, this will also carry over to Octopus.
What’s the Draw to Octopus Energy?
Having been a Which? Recommended Provider for a number of years, it’s easy to see at a glance that Octopus Energy is a company that you can trust.
Their biggest draw is that they aim to provide 100% green energy to their customers. All energy tariffs offer renewable energy as standard, from wind and solar power. There’s even an option to offset any gas you use, which helps reduce carbon emissions further.
The only downside is that, while energy providers like Octopus produce renewable electricity, there’s no guarantee that you’ll be receiving it. All energy comes from National Grid, which every provider feeds into. This means you’ll likely be using a mix of renewable and non-renewable energy at any one time. By paying Octopus Energy, though, you’ll be helping increase the amount of renewables that feed the grid.
Go Solar – Earn Money
If you’re thinking of moving over to Octopus Energy, you can make use of one of the best solar exports on the market. Any unused electricity that you generate can be exported back to the grid. When signed up to the Smart Export Guarantee (SEG), this can earn you money.
Octopus has a fixed outgoing SEG of 15p/kWh. This means you can earn around £87 a year through exports, and receive energy bill savings of £962. You will be able to earn more or less than this depending on your usage and the size of your solar array.
Get a quote for solar panels by clicking on the button below.