E.on's takeover of Ovo Energy has received the go-ahead from the competition watchdog, MoneySavingExpert reported on 2 October 2026, with the deal first mooted in May1. Ovo customers will be moved to E.on, although the transaction had not completed at the time of reporting1.
The combined business will have about 9.6 million customers in total, covering both household and business users, surpassing Octopus as Britain's largest supplier1. E.on has 5.6 million customers and Ovo has 4 million1. Ovo launched in 20091. According to analysis by the consultancy Cornwall Insight, E.on will become the second largest domestic supplier with 25 per cent of household electricity and gas accounts, behind Octopus on 26 per cent and British Gas on 23 per cent2. Once the deal completes, Octopus, British Gas, E.on, EDF and Scottish Power will control 90 per cent of the UK's domestic energy market, and three firms will supply 74 per cent of British homes2. Before the 2021 energy crisis there were around 50 suppliers in the market; as of this year there are 172.
"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."
Goswell also said that since 2020 high wholesale prices have pushed many smaller suppliers out of the market and kept switching well below pre-2020 levels, and that the concern with fewer suppliers is that the pressure to compete eases off2. He added that larger suppliers bring a degree of stability and have the scale to invest2. No details of potential future tariff price increases or reductions by E.on or Ovo have been published2.
Ovo has already sold its home services division, which provided boiler servicing and insurance, to energy services provider Hometree1. Ovo and E.on will continue to operate separately until the takeover goes through1. Ovo says all existing tariffs will be honoured throughout the takeover, benefits paid directly off energy bills will continue, and there should be no interruption to supply during the merger1. Customers of both firms do not need to do anything for now, tariffs stay the same, Warm Home Discount payments continue, and credit balances remain protected2.
Why it matters for households
The deal concentrates the household market further, and the question raised by Cornwall Insight is whether less competition weakens the incentive to keep prices low and offer something different2. For a household, the practical effects reported so far are limited: supply continues, tariffs are honoured, and bill-linked benefits such as the Warm Home Discount carry on1. Energy independence in the sense of choosing between many suppliers is reduced, with 17 suppliers in the market against around 50 before the 2021 crisis2. Wider bill pressure sits alongside the merger: gas and electricity prices rose 4 per cent from 1 October, after a 13 per cent rise at the start of July, and Cornwall Insight expects Ofgem's price cap to rise in January 2027 to £1,999 a year for typical use, up £276 from £1,723 in October 2026, which would be the highest level since March 20232. The current cap takes an annual bill to £1,723 for a typical household using both fuels and paying by direct debit2. Wholesale energy prices are the largest factor in the cap, which is set quarterly using a formula that also reflects network costs and environmental and social levies2.
What happens next
The deal has not yet completed, and the two firms continue to operate as separate businesses in the meantime1. No completion date has been reported.