Shedden is currently HR Director for Centrica Energy and will succeed Anne Minto OBE following Minto's retirement in July 2011.
Shedden joined Centrica as a graduate in 1988 and has since held a number of HR roles within the group.
Shedden is recognised for her focus on employee engagement which she led firstly as HR director in British Gas Business, gaining Centrica's first placement in the Financial Times' Great Places to Work accreditation, a success which she has repeated in both British Gas Energy and Centrica Energy.
Commenting on the appointment, Sam Laidlaw, CEO Centrica said: "I am particularly pleased that we have been able to promote another of our talented leaders to the executive team and demonstrate that we are developing a strong succession pipeline in Centrica."
Minto will retire from her role this summer after almost nine years with Centrica as group director HR and member of the Centrica executive committee. She will continue with her role as a non-executive director and chairman of the Remuneration Committee at Shire Pharmaceuticals.
Laidlaw added: "Anne's ability to seek out and encourage individuals to take on challenging leadership roles has been at the heart of our success in building a great company and helping us to earn a recognised external reputation as an 'Employer of Choice'".
Shedden will take up her new group role on 1 July, reporting to CEO Sam Laidlaw and will also join the Centrica Executive Committee.