E.On Plans to Acquire Ovo Energy in Deal That Could Reshape Britain’s Power Market
BBC Business reported Monday that E.On has announced plans to acquire rival domestic energy firm Ovo, a move that would vault the combined business into contention for the title of Britain’s biggest energy supplier.
Consumer advocates have urged Ovo’s four million account holders to stay calm. The transaction requires regulatory sign-off, and both companies confirmed that no changes will affect customers during the review process.
What the Deal Would Mean for Customers
Consumer group Which? reassured Ovo households that existing fixed-rate contracts and other tariff arrangements would be honored for their full duration. Customers retain the right to switch providers at any time, the group added.
Price comparison service Uswitch noted that some customers may feel anxious about the change. However, credit balances would automatically carry over if the merger proceeds, leaving households financially protected throughout the transition.
E.On currently serves roughly 5.6 million customers across Britain. Adding Ovo’s base would produce a combined footprint large enough to challenge Octopus Energy for market leadership, depending on how domestic accounts are measured.
Background: A Consolidating UK Energy Sector
Britain’s retail energy market has undergone significant restructuring since the 2021-2022 price crisis drove dozens of smaller suppliers out of business. Larger, better-capitalised firms absorbed millions of orphaned accounts, accelerating consolidation across the sector.
Cornwall Insight analyst Tom Goswell told BBC Business that scale brings genuine advantages, including financial resilience and the capacity for long-term investment. He cautioned, however, that fewer competitors could narrow consumer choice over time.
The deal’s price tag has not been formally disclosed. Earlier reports placed a possible valuation at up to £600M.
What Both Companies Said
Marc Spieker, E.On’s chief operating officer for commercial operations, described Britain as a priority growth market. He framed electrification and energy flexibility as central to Europe’s broader transition away from fossil fuels.
Ovo founder Stephen Fitzpatrick called the proposed combination the logical next step for the company’s customers, workforce, and decarbonisation ambitions.
Trade union Unison raised the question of job security. The union’s south-west regional secretary, Tim Roberts, acknowledged that workers would have reasonable concerns and called on E.On to engage constructively with staff representatives as the process advances.
Regulators are expected to deliver a verdict on the transaction later this year. Until then, both brands will continue operating independently.
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