First Utility joins with Shell to supply in Germany

Independent supplier First Utility is to partner with energy giant Shell to launch into the German electricity and gas domestic supply market, its first move into a foreign market.

First Utility will operate in the German market from October under the Shell Energy Europe brand through its German subsidiary First Utility GmbH.

First Utility’s chief executive Ian McCaig said the supplier will bring its business model of low transparent prices to the “complicated” German market.

McCaig said the decision to partner with Shell was a “pragmatic” one that would allow them to distinguish themselves from the “long tail” of independent suppliers operating in the German market.

He said the familiarity of the Shell brand with German consumers would allow the supplier to penetrate the market quickly.

The move marks the first Shell branded collaboration with a retail energy provider in Germany which already has 1,500 energy suppliers currently operating within the German domestic market, supplying 46 million domestic customers of which 45 per cent of which on a special contract with their local supplier.

First Utility’s chief executive Ian McCaig said: “Our customers in the UK have experienced a very real and positive difference in joining First Utility. We have shown that greater engagement and transparency from an energy supplier as well as great prices can really benefit customers and we believe the same fundamentals will appeal in Germany as well.”

Shell Energy Europe’s general manager North West Europe Jonathan McCloy said: “Shell Energy Europe has an established and strong presence in the German market offering advanced energy solutions to wholesalers and large industries.

“This agreement allows us to access the household market in Germany through a trusted relationship with First Utility.”