Octopus Energy is in detailed talks to buy Shell PLC's household energy customer base - a deal that would edge the company closer to challenging British Gas as the UK's biggest domestic gas and electricity supplier, according to Sky.
Sky said Octopus Energy, run by Greg Jackson, has emerged as the frontrunner to acquire Shell Energy Retail although other parties remain in the frame to buy the business.
If completed, a takeover by Octopus Energy would take the number of homes it supplies in the UK to about 6.5 million - still short of Centrica-owned British Gas but larger than virtually every other competitor in the UK market, the report said.
Shell announced a formal divestment process in the spring, saying that selling the unit would remove around £238 million in annual operating expenses.