By Vera Eckert
FRANKFURT, Sept 30 (Reuters) - Shell, a brand wellknown to car owners throughout Germany, has expanded apartnership to provide households with gas and electricity inEurope's biggest retail market.
The oil major's supply and trading arm Shell Energy Europeand First Utility, a UK-based independent energy provider, onWednesday unveiled Shell Privatenergie, a new household energysupplier that pools their energy sourcing and marketing powers.
"We are betting on a partnership with Shell as an energycompany with a high ability to procure, as well as a high marketstrength," Maik Neubauer, managing director of Hamburg-basedFirst Utility GmbH, told Reuters.
Germany has an abundance of competition: industry group BDEWsays consumers have a choice of 1,190 retail power companies and890 selling gas.
But 70 percent of its 40 million households have notventured away from their original supplier after years ofliberalisation, mainly for fear of complicated tariffs and outof concern that the hassle won't justify the savings.
Neubauer said First Utility would offer "transparent tariffstructures and sustainable customer service" to persuade peopleto switch.
In Britain, First Utility doubled customer numbers in threeof the last four years. Neubauer said ShellPrivatenergie can replicate some of that success in Germany,where he said many suppliers are only active in regional niches.
From Wednesday, Shell filling stations and Internetcampaigns will advertise new gas and power contracts aimed atthe 7 million members of Shell's ClubSmart loyalty card scheme.Shell has 2,200 German filling stations used by one millioncustomers each day.
They will be able to collect bonus points with the newproducts which can be exchanged against goods or discounts ongasoline.
First Utility will administer the contracts and pay licencefees to Shell.
"This agreement allows us to access the household market inGermany through a trusted relationship with First Utility," saidJonathan McCloy, general manager for northwest Europe for ShellEnergy Europe.
First Utility's push into Germany marks its first overseasmove, while the London-based Shell unit also hopes to exploreareas beyond wholesale and industry supply activities.
German retail prices and thus margins, however, have fallen,along with declining global fuel prices.
The annual power bill of a typical family cost 1,112 euros($1,246.44) in September, 2.4 percent less than a year ago, and gas cost 1,270 euros, 2.5 percent less year-on-year, saidinternet portal Verivox.
($1 = 0.8921 euros) (additional reporting by Karolin Schaps in London, Editing byMark Trevelyan)
