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E.On moves to purchase Ovo Energy in major UK energy deal
Consumer advocates are urging Ovo Energy customers to remain calm following E.On's announcement of plans to acquire the rival supplier, a move that would create one of Britain's largest energy providers.
Customer assurances amid takeover plans
Which? and other consumer groups have confirmed that existing Ovo tariffs, including fixed-rate contracts, will be honoured in full if the deal proceeds. Gas and electricity services are expected to continue without disruption during the regulatory review process.
Emily Seymour, energy editor at Which?, stated:
"If you're an Ovo customer, don't panic-your supply will continue as usual. E.On has assured customers that existing tariffs will be honoured and service will remain unchanged. No action is required, and you retain the option to switch suppliers if desired."
Regulatory scrutiny and market impact
The proposed acquisition, which could be finalised later this year, will undergo regulatory assessment before approval. While the deal's financial terms remain undisclosed, earlier reports suggested a potential value of up to £600 million.
If approved, the combined entity would rival Octopus Energy for dominance in the UK market. Market share calculations vary: counting dual-fuel customers as a single account would position the merged company as the largest, while separate gas and electricity tallies would leave Octopus ahead.
Tom Goswell of Cornwall Insight noted that larger suppliers often bring "stability, resilience, and greater investment capacity," though consolidation could reduce consumer choice.
Company statements and workforce concerns
Marc Spieker, E.On's chief operating officer for commercial operations, emphasised the UK's strategic importance for the company, citing "energy flexibility and electrification as critical to the energy transition." He added that E.On aims to develop solutions enabling customers to contribute to a "reliable and affordable energy system."
Stephen Fitzpatrick, Ovo's founder, described the deal as the "right next step for customers, employees, and the zero-carbon transition."
However, Tim Roberts, regional secretary for the Unison union, highlighted workforce concerns:
"Ovo employees will understandably worry about job security, pay, and conditions. E.On's track record of constructive union engagement will be crucial as the deal progresses."
What happens next
Both companies have pledged no immediate changes for customers while regulators evaluate the transaction. Sabrina Hoque of Uswitch reassured Ovo users that credit balances would be protected, with automatic transfers if the deal is approved.
