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Shell to acquire energy retailer Powershop Australia

By Fitri Wulandari

01:19, 22 November 2021

A light bulb with the map of Australia as glowing wire
A light bulb with the map of Australia as glowing wire - Photo: Shutterstock

Shell Energy Operations, a wholly-owned subsidiary of Shell, announced on Monday that it will acquire online energy retailer Powershop Australia for an undisclosed amount.

Powershop Australia serves 185,000 residential and small business customers. It offers electricity in Victoria, New South Wales, South Australia and South-East Queensland, as well as gas in Victoria.

Powershop will form Shell’s residential power platform in Australia, extending Shell’s existing position as Australia’s largest dedicated retailer of electricity to commercial and industrial customers, Shell's said in the statement.

Renewable energy assets

“Shell has been in Australia for more than 120 years and has a proud history of providing Australians with the energy they need to power their lives. This acquisition will see Shell continuing to serve the energy needs of our customers – this time in their homes,” said Shell Australia chairman Tony Nunan.

Under the arrangement with ICG, Shell Energy will also acquire wind power purchase agreements (PPAs) and has agreed offtake arrangements with ICG associated with Meridian Energy Australia’s (MEA) hydro and wind assets.


16,075.90 Price
-0.060% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8


1,994.12 Price
-0.540% 1D Chg, %
Long position overnight fee -0.0199%
Short position overnight fee 0.0117%
Overnight fee time 22:00 (UTC)
Spread 0.50


0.63 Price
-5.880% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


42,366.65 Price
-3.500% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

MEA is Powershop’s parent company. According to Powershop’s website, MEA has four wind farms and four hydro projects.

Integrated power business

Powerhouse has received Climate Active certification from the Australian government. The certification is awarded to businesses and organisations that have credibly reached a state of achieving net zero emissions.

Powerhouse acquisition is line with Shell’s strategy to create an integrated power business. Shell aims to sell around 560 terawatt hours a year globally by 2030 as part of its integrated power business or twice as much electricity as its businesses sell today. It expects to serve more than 15 million retail and business customers worldwide.

Read more: Shell sells £1.3bn stake in Australia's Woodside Petroleum

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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