Shell has put its household energy supply business up for sale as it faces a fresh ‘greenwashing’ row over its renewable credentials.
The decision to quit the sector after only four years followed a strategic review of the division under boss Wael Sawan, with the company citing ‘tough market conditions’.
Shell Energy was created in 2019 when the company bought household energy provider First Utility.
Shake-up: Shell’s decision to quit the household energy sector after only four years followed a strategic review of the division under new boss Wael Sawan (pictured)
In the following years, it absorbed several failed rivals and supplies around 1.4m homes.
It provides broadband internet to around half a million households.
A Shell spokesman said a sales process was ‘already under way’ and it aimed to reach a deal with a buyer ‘in the coming months’.
In May, it was reported that UK providers Octopus Energy and Ovo were bidding for the arm, alongside British Gas owner Centrica.
The decision came as the UK’s advertising watchdog ruled that Shell misled consumers about its renewable energy credentials.
In a ruling published today, the Advertising Standards Authority (ASA) said the oil giant had breached marketing rules last year when it ran an ad touting Shell Energy’s provision of renewable power in Bristol.
The regulator said the ads ‘gave the overall impression that a significant proportion of Shell’s business’ was comprised of lower-carbon energy and were therefore ‘likely to mislead’ consumers.
Shell ‘strongly’ disagreed with the ASA ruling.
The ASA’s move follows a wider backlash against greenwashing by corporations.
Last week, EU regulators uncovered evidence that major banks and other financial institutions had been promoting their support of clean energy while continuing to finance fossil fuel extraction and deforestation.
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