Octopus to buy Shell's household energy firm

Octopus has announced it will buy Shell's household energy business in the UK and Germany.

Octopus Energy said that it will take over providing energy for 1.4 million homes as well as broadband services for 500,000 customers.

Shell's customers are advised to "sit tight for now" as the deal is not expected to be completed until later this year.

It is the latest expansion for Octopus which bought Bulb after its collapse.

That deal - which rival energy providers challenged in the UK High Court over state support - gave Octopus an additional 1.5 million customers.

With Shell, its total customer base will grow to nearly 6.5 million customers.

Shell and Octopus both refused to disclose how much the business is being sold for.

Octopus said: "There will be a smooth transition and no disruption to customer energy supply, all Shell energy and broadband customers will be contacted about the next steps following regulatory approval.

"Customer credit balances are protected, and will automatically get transferred to their new account with Octopus together with their existing direct debits."