Octopus Energy to buy Shell Energy UK – here's what you need to know

If you're in contract with Shell, it should be honoured but there's some uncertainty until the sale to Octopus goes through

When Shell first announced its intention to sell its energy and broadband businesses back in June, a spokesperson for the firm told us: "We would anticipate that any customers on a fixed-term contract, either for broadband or energy, will see those terms honoured throughout any transfer of ownership."

Octopus is yet to confirm what will happen to customers' individual contracts if the sale goes through – it says it will email customers with full info if the deal is approved. However, if you're out of contract or on a variable deal, prices could change if the sale goes through.

• Of Shell's 1.4 million energy customers, the vast majority are on its standard variable tariff. This is currently controlled by the Energy Price Cap, with only a small number on fixed-price contracts. If you're on a variable tariff, you won't have exit fees, so you're free to switch away at any point penalty-free.
  
  About three weeks ago, Shell started offering a fixed deal again, initially to existing customers, though it has since opened it up to new customers (for more info on available fixes, see our Should I fix my energy or stay on the Price Cap? guide). If you've fixed or switched to Shell, Octopus has yet to confirm if it will honour your deal and whether any exit fees will be waived if you want to switch away once you're transferred to Octopus.
  
  However, Ofgem told us that, in general, it would expect existing fixed deals to be honoured when a supplier is bought. 
  
  
• It's unclear how many Shell broadband customers are in contract. If you're out of contract, you can leave penalty-free at any point. If you're in contract, you can't currently switch fee-free, though rules from broadband regulator Ofcom state that if your broadband provider changes your contract terms and the change does not benefit you, you have the right to exit penalty-free. You must be given at least one month's notice of any changes. 

What does Octopus Energy say? 

Greg Jackson, chief executive and founder of Octopus Energy Group, said: "Our commitment to customers is paramount and we will do whatever it takes to deliver the Octopus promise when we welcome these new customers too."