Shell Energy is threatening up to 2,000 jobs in the UK after it announced that it was looking at quitting the energy industry.
According to the firm, it is conducting a strategic review of its operations in the UK and the Netherlands amid “tough market conditions”.
The Coventry-based firm provides energy to approximately 1.4 million homes in the UK and broadband to about 500,000.
A spokesperson stated that “No decisions have been made on the way forward” but added that the review could take several months.
Although the company stated that it wants to maximize value and address performance in difficult market conditions, it did not specify what this might mean for employees.
One option is to exit the home energy market entirely.
The Ofgem cap has placed restrictions on energy firms. This will change in April and limit the amount that suppliers can charge for their energy.
This means that firms must set prices lower than it costs to purchase wholesale gas or electricity.
It was reported in May 2022 that 30 energy companies had stopped trading in Britain since August 2021.
Shell stated that it remains committed to its business model, which involves producing, buying and trading energy around the globe.
The firm stated that its priority is to make sure customers in these countries have access to reliable, affordable energy supplies. It also provides support to customers who are facing high energy prices and other cost-of-living issues.
