- Germany’s E.ON has agreed to buy rival OVO Energy in a deal that will add about four million customers to E.ON’s 5.6 million strong base. The combined company will supply roughly 9.6 million households, overtaking Octopus Energy’s 8 million to become Britain’s biggest provider.
- More than 60% of the enlarged customer base will have smart meters, enabling time‑of‑use tariffs and automated demand response.
- The undisclosed purchase price is reported around £600 million. The deal must be approved by the Competition and Markets Authority, with closing expected in the second half of 2026.
E.ON’s agreement to purchase OVO Energy represents the most significant consolidation in the UK retail energy market since privatisation.
The German utility already serves 5.6 million British customers; by taking over OVO’s roughly four million customers, E.ON will surpass Octopus and British Gas to become the country’s largest energy supplier.
The combined business will have 9.6 million customers, giving it enormous leverage in procurement and network negotiations.
The deal, reported to be worth about £600 million, comes after OVO’s rapid expansion was undermined by soaring wholesale prices and the collapse of several smaller suppliers. OVO founder Stephen Fitzpatrick sought new investors to stabilise the company; E.ON’s deep pockets provide that lifeline.
OVO will sell its home services arm to Hometree to streamline the business and raise cash. OVO said regulatory changes mean suppliers need scale and long‑term capital, implicitly acknowledging that small independents may struggle under tougher market rules.
E.ON plans to retain the OVO brand initially and integrate Kaluza, OVO’s flexible‑platform technology, into its operations. The companies say more than 60% of their customers already have smart meters, enabling advanced services such as time‑of‑use tariffs, remote demand response and integration of rooftop solar, batteries and electric‑vehicle charging.
E.ON UK chief executive Chris Norbury said the acquisition will “put customers in control” of their energy, allowing them to generate, store and sell power with ease.
Regulators and consumer groups will scrutinise the transaction. Cornwall Insight analyst Craig Lowrey noted that the merger reduces the number of large suppliers and could weaken price competition, but also allows greater investment in electrification and heat pumps.
The Competition and Markets Authority will review whether the deal harms consumers; approval is expected in late 2026. Until then the companies will operate separately, and tariffs and contracts remain unchanged.
The merger signals a trend towards consolidation and digital platforms. It underscores the need for scale to invest in flexibility services, heat pumps and EV infrastructure. Smaller suppliers may look for partnerships or exit.
If regulators approve, the combined E.ON‑OVO could become a heavyweight shaping customer behaviour, pricing structures and the rollout of smart technologies across the UK.
