Three firms will supply 74% of UK homes after Eon-Ovo merger

Summarised from 2 outlets · Updated 8 Oct, 16:44 · Archive

E.ON has completed its takeover of Ovo Energy, leaving just three suppliers serving almost three-quarters of British households.

E.ON Next has completed its takeover of Ovo Energy after Britain's competition watchdog cleared the deal. The merger leaves almost three-quarters of households in Great Britain served by just three energy suppliers: E.ON Next, Octopus Energy and British Gas. While Ovo's 4 million customers will see no immediate change, E.ON Next will now hold 25 per cent of the household energy market, becoming the second-largest supplier behind Octopus Energy at 26 per cent, with British Gas at 23 per cent.

The takeover marks a significant consolidation in the energy market. E.ON already supplied 5.6 million households before acquiring Ovo's 4 million customers. This development has drawn criticism from observers concerned about market competition. Tom Goswell of Cornwall Insight said: 'The big six have become the big three, and there have been questions raised over how this will impact household choice and the health of the market.'

The competition watchdog approved the merger despite these concerns that the shrinking number of suppliers could mean billpayers have less choice and suppliers will have less incentive to lower bills. E.ON's chief executive Chris Norbury defended the deal, describing the market as 'fiercely competitive' and saying the company's 'flexibility and scale' would allow it to 'deliver for customers now and to transform for the energy system to come'.

How it is being reported

• E.ON Next deal to buy Ovo Energy leaves UK with just ‘big three’ energy suppliersCompetition watchdog clears takeover despite concerns that suppliers will have less incentive to lower bills Almost three-quarters of households in Great Britain are now served by just three energy suppliers, after E.ON Next completed a deal to buy Ovo Energy despite fresh concerns about competition in the energy market. The takeover concluded on Thursday after Britain’s competition watchdog cleared it, despite concerns that the shrinking number of household energy suppliers could mean billpayers will have less choice and suppliers will have less incentive to lower bills. Continue reading...The Guardian · 8 Oct, 16:16
• Just three energy firms will supply 74% of British homes after Eon-Ovo merger: Will it drive up bills?British Gas, Eon and Octopus Energy will control the vast majority of the UK's household energy market once the merger completes. Will it be a good thing for customers?This is Money · 8 Oct, 06:00

In this story: E.ON Next · Ovo Energy · Octopus Energy · British Gas · Great Britain · Cornwall Insight

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem