The broadband empire founded by Sir Charles Dunstone is to acquire nearly half a million retail customers following Shell’s decision to exit the British residential energy market.

Sky News has learnt that TalkTalk Telecom has clinched a deal to absorb the 480,000-strong broadband customer base of Shell Energy Retail UK from Octopus Energy.

An agreement, for which the consideration was unclear on Thursday, could be announced within days, according to insiders.

TalkTalk already serves the former Shell customers through its wholesale platform, meaning the deal will not inflate its customer base of about four million people.

It will, however, give Sir Charles’s group the retail margin generated by the 480,000 consumers.

Octopus Energy agreed earlier this year to buy the Shell household energy business, comprising about 1.3 million British homes, in a deal which catapulted it further up the rankings of gas and electricity suppliers.

Be the first to get Breaking News

Install the Sky News app for free

Run by Greg Jackson, Octopus Energy is now valued by investors at several billion pounds.

Complaints about car finance and motor insurance hit five-year high as costs surge

Rajasthan Royals owner goes into bat with $650m valuation

Stock markets rise as US eyes interest rate cuts ahead

TalkTalk, meanwhile, is in the middle of a broader restructuring which involves it being broken up into three distinct companies, including its wholesale platform and consumer base.

The other division, which serves business customers, was sold in October to a special purpose vehicle controlled by TalkTalk’s shareholders.

Octopus Energy and TalkTalk both declined to comment.

Related posts:

From PPI and the Priory to pride at exiting bailout: Lloyds’s £60m boss signs off US giant REEF Technology tables bid to park next to NCP Inflation rates, quantum computing and coronavirus restrictions Saudi state fund buys McLaren stake in £550m deal Era of feeding a family of four with a £3 chicken coming to an end, says poultry boss British Gas chief to waive £1.1m bonus as households face bill surge SWIFT sanctions could hurt Russia – but pain would also be felt by the West Tax rises or spending cuts needed to avoid ‘unsustainable’ public debt, watchdog warns British Airways check-in staff strike suspended as company makes improved pay offer, union says Manchester United shares tumble following report that bidders have fallen short Veteran M&C Saatchi chief to step down after 28-year stint Ocado soars on £200m Autostore patent battle settlement