Octopus completes deal with Coventry-based Shell Energy to becomes Britain's second-largest supplier

Energy supplier Octopus has purchased Shell's Coventry-based household and gas electricity business, Shell Energy.

The company, which started as a challenger to traditional suppliers, is now the second-largest supplier in the UK after taking on Shell Energy's 1.3 million customers.

Founded in 2015, Octopus now has 6.6 million customers. Earlier this year it took on 1.5 million customers from Bulb after the firm went into administration.

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As part of the deal, Octopus has also acquired almost 500,000 Shell broadband customers.

Octopus has advised shell customers to 'sit tight' as it migrates their accounts. It has promised "a smooth transition and no disruption to their energy supply.

"Credit balances are protected and will automatically get transferred to customers’ new accounts with Octopus together with their existing direct debits," said Octopus.

Greg Jackson, founder of Octopus Energy Group, said: “We are pleased to be the new home for Shell Energy Retail customers in the UK and Germany.

"Our commitment to customers is paramount, and we will deliver the Octopus promise when we welcome these new customers too.”

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Octopus is headquartered in London and operates in 17 countries, with significant businesses in energy retail, generation, technology, heat pumps and electric vehicles.

It has received well over £1 billion in investment from global giants, including investment funds, pension funds and large energy companies.