Tuesday 10 December 2013

Big Six rival's deal with Shell in hope of cheap energy prices

Independent energy supplier First Utility has signed a five year energy trading partnership with Shell.

The deal effectively sees the British oil giant play broker for the smaller firm, buying gas and electricity from the wholesale market.

It’s the second such arrangement for Shell Energy Europe in the UK, earlier in February announcing it will trade power for business supplier Hudson Energy.

The firm said it will use its “scale and expertise to competitively source” energy. Ken Snodgrass, its General Manager for North West Europe said: “Shell has worked in partnership with North American and European energy independents for over ten years now.”

Ian McCaig, CEO of First Utility said: “This is a significant milestone in First Utility’s journey. Our agreement with Shell provides us with the ideal strategic partner to support our growth and underpin our proposition to offer customers competitive rates in the market.”

If things go well the trading partnership could carry on for another five years.