Shell review of energy retail division puts 2,000 jobs at risk
By Frank Prenesti
Date: Friday 27 Jan 2023
(Sharecast News) - The future of 2,000 Shell workers is in doubt after the energy giant unveiled a "strategic review" of its domestic energy and telecoms supply division.
The company on Thursday told staff in the division that it has begun analysis of future options for the business, which could include leaving.
Shell said it was "continually exploring options to maximise the value of our portfolio and address performance in tough market conditions". Its UK business has 1.4 million energy customers and about 500,000 broadband users.
The oil and gas company moved into the home supply market five years ago after it bought First Utility and rebranding the operation. It took over the Post Office's broadband customers in 2021.
The energy company and its rivals reported booming profits from their oil and gas operations in 2022 as the price of commodities spiked, in part as a result of Russia's invasion of Ukraine.
However, retail energy suppliers have struggled in recent years with nearly 30 UK operators going bust, including Bulb which collapsed into a government-handled administration before its acquisition by Octopus Energy.
Shell said that "no decisions" had been take on the future of its home retail businesses and the review process would take "a number of months".
"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," Shell said.
It added that its wholesale and business-to-business energy supply divisions were unaffected, along with its businesses supplying homes in the US and Australia.
Reporting by Frank Prenesti for Sharecast.com
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