In 2015, with the oil price in the doldrums, Royal Dutch Shell launched its whopping £47 billion takeover bid for BG Group, the oil and gas exploration arm of the former state-owned British Gas. Now, less than three years later, it is making significant strategic moves to challenge the dominance of the Big Six domestic energy suppliers in Britain, particularly the market leader – that other arm of the old British Gas that lists as Centrica but is still British (or Scottish) Gas as far as its customers are concerned. Just before Christmas Shell acquired the largest of the new challenger energy suppliers in Britain, First Utility. Its 825,000 household customers cost Shell a reported $200 million. However, that is only a taster of what Shell is planning next. With its established forecourt presence making it a familiar brand with motorists, it wants to use that recognition to supply them and their families with gas and electricity too. Expect Shell to acquire existing wind and solar assets. It says it will invest in new offshore wind and solar capacity and acquire or build modern gas-fired electricity generation plants, while introducing fast-charge points in its filling stations as electric vehicle technology matures.With its determination to disrupt existing Big Six dominance in domestic energy supply not now in doubt, how are the incumbents responding? Well two – the Perth-based SSE and German-owned Npower – announced the fruits of their own strategic thinking in November last year. With the British government minded to introduce a price cap on energy prices by the end of this year, they reached agreement to merge and hive off their retail electricity and gas supply businesses as an independent quoted business.
Times 14th Feb 2018 read more »
Shell has suggested it will become the next major oil firm to enter the new build solar market after it was reported over the weekend that the Dutch giant plans to build solar farms in Britain. The Times reported on Saturday that the company was planning to enter the UK’s competitive energy market through the acquisition of gas-fired power plants and construction of both solar and wind farms. Royal Dutch Shell has been making some moves in the solar market both in the UK, where it recently agreed a deal to become the sole off-taker of England’s largest solar farm, and globally.
Solar Power Portal 13th Feb 2018 read more »