The move will make Shell Energy one of the largest UK energy suppliers outside the big six. It currently has about 780,000 customers.

Under the agreement, Shell Energy (formerly First Utility) will buy Hudson Energy Supply UK for £10.5m. Hudson Energy Supply UK is a UK-facing entity belonging to Canada’s Just Energy Group which supplies energy to 200,000 homes and 2,000 commercial properties in the UK through the Green Star Energy brand.

The deal is subject to regulatory approval, and is expected to be completed by the end of 2019. Until then, nothing changes and both companies will continue to operate separately.

The move is the latest consolidation in the energy sector. Octopus took on Co-operative Energy customers in July, and SSE has announced that it’s selling its household energy business to Ovo.

Colin Crooks, Shell Energy retail chief executive, said: “As part of our ambition to build a significant UK retail energy business, this deal will take the number of Shell Energy Retail’s UK residential customers to just under one million and adds to Shell’s presence in the B2B (business-to-business) market.

“Green Star Energy’s customers will enjoy continued security of supply with no change to their current tariff terms and conditions after completion.”

What does this mean for Green Star Energy customers?

Under the terms of the deal, the Green Star Energy brand is likely to remain with Hudson Energy Supply UK operating as a subsidiary of Shell Energy.

Green Star Energy customers shouldn’t see any changes to their current tariff or terms and conditions. If you’re on a renewable tariff with Green Star Energy, Shell Energy will honour this.

Green Start Energy customers will still get Perks Rewards which are points awarded every three months to customers on eligible tariffs which can be exchanged for gift cards and smart energy efficiency products.