Shell Energy is offering 700,000 UK homes 100% renewable electricity for first time

Oil giant to take on UK’s heavily criticised ‘Big Six’ suppliers which have lost millions of customers in recent years

Royal Dutch Shell has announced its arrival as a household gas and electricity supplier, moving 700,000 First Utility customers to its Shell Energy brand.

All of Shell’s residential energy customers will be supplied with 100 per cent renewable electricity. Shell Energy customers can take advantage of a 3 per cent discount at Shell petrol stations, as well as discounts on home technology like smart thermostats and electric vehicle chargers.

Shell Energy chief executive Colin Crooks said the company would use fuel forecourts to promote the new offer.

The company surprised the business world when it pounced for First Utility in 2017. It marks a tentative step on the path towards a more sustainable future for Shell, which derives the vast majority of its $400bn revenues from oil and gas.

The rebrand to Shell Energy sets up the world’s largest listed oil giant to take on the UK’s “Big Six” suppliers which have lost millions of customers in recent years.

Shell Energy will have one of the cheaper deals on the market at around £970 a year for an average household usage of gas and electricity – £78 more than the cheapest available.

The company said a survey found that almost 60 per cent of UK households wanted to power their homes with renewable electricity.

Shell Energy chief executive Colin Crooks said: “We are building on the disruptive nature of First Utility to give customers something better. We know that renewable electricity is important to them and we are delivering that, while ensuring good value and rewarding loyalty.”

Mark Gainsborough, Shell’s executive vice president of new energies, said: “This is a good example of our approach to building a significant electricity business, in line with customer needs.

“Shell recognises the world needs more energy with lower emissions and this will give customers more flexibility, greater control and cleaner energy.”

The company has said it is aiming to become the largest electricity company by the 2030s, as it prepares for a fundamental shift in global energy supplies towards lower-carbon sources.

Shell’s plan is a response to an expected shift in the world’s energy system to much greater use of electricity, up from about 20 per cent today to 50 per cent or more.