E.On Plans to Acquire Ovo Energy in Deal That Would Create Britain’s Largest Supplier
BBC Business reported Monday that German energy giant E.On has announced plans to acquire British supplier Ovo Energy in a deal that could reshape the UK’s retail energy landscape.
The Ovo Energy takeover, if approved by regulators, would combine E.On’s 5.6 million UK customers with Ovo’s four million accounts. That combined base would surpass Octopus Energy as the country’s single largest domestic supplier.
Customers Urged to Stay Calm
Consumer advocates moved quickly to reassure households caught up in the uncertainty. Emily Seymour, energy editor at consumer group Which?, told BBC Business that Ovo customers should carry on as normal. She said existing tariffs would be honoured in full and gas and electricity service would remain uninterrupted throughout the review period. Customers retain the right to switch supplier at any point.
Price comparison platform Uswitch also addressed concerns around credit balances. Sabrina Hoque, a spokesperson for the site, noted that any accumulated account credit would be automatically transferred if regulators ultimately greenlight the deal.
A Deal Still Under Scrutiny
The financial terms of the acquisition remain undisclosed, though prior market estimates put the figure at up to £600 million. Both companies confirmed the arrangement is subject to full regulatory review before any formal approval can be granted. Until that process concludes, E.On and Ovo will continue operating independently.
Marc Spieker, chief operating officer for commercial operations at E.On, described Britain as a priority growth market. He pointed to energy flexibility and electrification as central pillars of the firm’s European strategy going forward.
Background: Ovo’s Rise in UK Energy
Ovo Energy was founded by Stephen Fitzpatrick and built its reputation as a tech-forward challenger to the traditional Big Six utilities. The company grew rapidly throughout the 2010s, acquiring SSE’s retail customer book in 2020 in a deal that vaulted it into the top tier of UK suppliers. Fitzpatrick called the planned E.On deal the logical next step for customers, employees, and the broader transition away from carbon-intensive energy.
The UK retail energy market has consolidated considerably since the wave of smaller supplier collapses that followed the 2021 and 2022 gas price shocks. Octopus emerged as a dominant force during that period, absorbing failed rivals. An E.On-Ovo combination would directly challenge that position.
A final decision on the deal is expected before the end of 2026.
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