E.On UK has agreed to buy rival OVO Energy in a major shake-up of the British energy market that will create the country’s largest household supplier.
The combined business is expected to serve around 9.6 million customers, overtaking Octopus Energy as Britain’s biggest energy provider by customer numbers.
Neither company disclosed the financial details of the transaction, though previous reports suggested the deal could be worth up to £600 million.
The takeover is expected to face scrutiny from regulators, including the UK competition authorities, before completion, anticipated in the second half of 2026.
The deal reflects the growing consolidation of Britain’s energy sector following years of market volatility, tighter regulation and rising investment demands linked to the transition toward cleaner energy systems.
Stephen Fitzpatrick, founder of Ovo, said the economics of the retail energy market had changed fundamentally in recent years.
“Energy retail is now more regulated, more capital-intensive and increasingly dependent on long-term investment and scale,” he said.
“In that context, bringing Ovo together with E.On is the right next step for customers, for colleagues, and for the long-term commitment that decarbonisation requires.”
Industry analysts said the merger would significantly strengthen E.On’s position in the UK market while giving Ovo access to greater financial scale amid mounting pressure on suppliers to invest in infrastructure, customer technology and low-carbon services.
Alongside the takeover, Ovo has also agreed to sell its home services division — which includes boiler servicing and insurance operations — to Hometree.
The agreement comes after several turbulent years for Britain’s energy market, during which dozens of smaller suppliers collapsed amid extreme gas price volatility, initially triggered by the post-pandemic recovery and later intensified by geopolitical instability and energy supply disruptions.
Larger firms with stronger balance sheets have increasingly benefited from the consolidation wave, while regulators have imposed tighter financial requirements designed to prevent further supplier failures.
The combined E.Ovo Business is expected to become one of the most influential players in Britain’s energy transition, particularly in areas such as heat pumps, smart energy systems and home electrification.
However, consumer groups are likely to examine the impact of further consolidation on competition and pricing within the household energy market as regulators assess the deal in the months ahead.
Leave a Comment