Eon has confirmed plans to acquire Ovo’s retail energy business in a deal that would create the UK’s biggest household energy supplier, serving around 9.6 million customers across Britain. The transaction remains subject to regulatory approval and is expected to complete during the second half of 2026.
The German energy group said customers on both E.ON Next and Ovo tariffs would see no immediate changes during the review process, with existing contracts and tariffs remaining in place. According to statements released by the companies, the merger is intended to expand services linked to home batteries, electric vehicle charging and time-of-use energy tariffs.
The agreement follows a difficult period for Ovo, which had previously warned of “material uncertainty” surrounding its future in published accounts. The supplier had also faced pressure from Ofgem after failing to meet financial resilience requirements set by the regulator.
At the same time, Eon described the acquisition as part of a broader strategy focused on customer participation in the energy system, particularly through technologies designed to shift electricity use to cheaper periods of the day.
Eon Says Customers Will Retain Existing Tariffs during Review Period
Eon stated that no immediate changes would affect households supplied by either company while regulators examine the proposed acquisition. Existing customer tariffs will continue to be honoured during that period.
According to E.ON UK chief executive Chris Norbury, the company selected Ovo because of its focus on digital energy services and technologies linked to household electrification. In a statement, he said the energy system had historically focused “too much on those upstream” and argued that solar panels, batteries and electric vehicles would give consumers greater control over energy use.
The company also pointed to Ovo’s experience with time-of-use tariffs, which reward households for moving electricity consumption to off-peak hours. Eon said the combined business would aim to expand services involving EV charging, home batteries and integrated energy management systems.
According to The Times, the enlarged company would surpass Octopus to become the largest energy supplier in the UK market, the deal value has not been disclosed publicly. Sky News had also reported that Eon and Ovo were targeting an announcement in May following negotiations over the takeover. Reports from the Financial Times, cited in earlier coverage, suggested Ovo could have been valued at approximately £600 million.
Ovo Restructuring Follows Financial and Regulatory Pressure
The acquisition comes after a period of financial strain for Ovo. According to The Times, the company warned in its latest annual report that there was “material uncertainty” over its future because of difficulties meeting Ofgem’s financial resilience standards.
The supplier had already launched cost-cutting measures during 2025, with reports indicating that hundreds of jobs were cut as the company sought to improve profitability. Former chief executive David Buttress also stepped down during efforts to secure additional funding or a buyer.
Ovo was founded in 2009 by entrepreneur Stephen Fitzpatrick and expanded significantly after acquiring SSE’s domestic energy business in 2020. The group currently includes the retail supply business and Kaluza, a separate technology platform used by external energy firms including Engie. As part of the wider transaction, Ovo also agreed to sell its home services division, which provides boiler servicing and insurance products, to Hometree.
Stephen Fitzpatrick said the retail energy market had become “more regulated, more capital intensive and increasingly dependent on long-term investment and scale”. According to company statements, he described the agreement with Eon as “the right next step” for customers, employees and long-term decarbonisation efforts.
