First Utility Ltd.

At the end of 2017 First Utility Ltd. was the largest of the middle-tier domestic energy suppliers in the United Kingdom, serving 808,000 of the country’s 27 million households with electricity and gas. In Q1 2017 First Utility captured 3% market share. The company had grown rapidly from 2011 to 2014, doubling in size each year, and CEO Ian McCaig had signaled that he was considering an IPO. However, in 2015 growth slowed, and profits fell by 84%. The same year, the company began expanding into Germany and Poland and building its own billing system. Growth slowed further in early 2016, and First Utility recorded a loss of £12.7 million for the year. Plans for an IPO were shelved. Instead, the company began looking for strategic partnerships to offer new products and services to its UK customer base. Whether First Utility’s new geographies and product lines would revive growth was unclear. Meanwhile, in May 2017, CEO McCaig announced that he would step down in September. In December 2017, the company announced that Royal Dutch Shell would acquire First Utility for an undisclosed sum. The deal was approved in February 2018, and First Utility was rolled into Shell’s New Energies division.