Rival energy firm E.On has announced plans to acquire Ovo Energy, a move that could establish Britain’s largest energy supplier. Consumer groups are advising Ovo customers not to be alarmed, emphasizing that all existing tariffs will be honoured in full and their gas and electricity services will remain unaffected.
Deal to Reshape UK Energy Market
The proposed takeover, if approved, would see E.On, which currently serves 5.6 million customers, and Ovo, with four million customers, combine to surpass current market leader Octopus. Both companies are expected to continue operating separately until a final decision on the deal is reached, potentially later this year. While the financial terms of the acquisition have not been disclosed, previous reports have suggested a valuation of up to £600 million. The transaction will undergo scrutiny from regulatory bodies before any approval is granted.
Customer Assurances Issued
Both E.On and Ovo have issued statements assuring customers that there will be no immediate changes during the regulatory review period. Specifically, all existing tariffs, including fixed-rate deals, will be maintained for their contracted duration. Emily Seymour, energy editor at consumer group Which?, stated, ‘If you’re an Ovo customer, don’t panic, your gas and electricity supply will continue as usual.’ She added, ‘E.On have assured customers that existing tariffs will be honoured in full and service will continue unchanged. You don’t need to do anything and you’re still able to switch supplier if you wish.’
Sabrina Hoque from price comparison website Uswitch acknowledged that Ovo customers might feel apprehensive. However, she reassured that even if the deal proceeds, customer credit balances would be protected and automatically transferred. Marc Spieker, chief operating officer commercial at E.On, highlighted the UK as a significant growth market for the company, emphasizing the increasing importance of energy flexibility and electrification for the energy transition. Stephen Fitzpatrick, founder of Ovo, described the planned deal as the ‘right next step’ for all stakeholders involved, including customers, staff, and the zero-carbon transition.
