Update - 14 May 2026: The deal has now been signed. E.ON formally announced the acquisition of OVO's UK retail business on 11 May. SwitchInsights' follow-up covers the CMA process and what OVO customers can expect next - read OVO E.ON Merger Confirmed: What Now.
What's reportedly happening
Sky News reports the E.ON OVO takeover talks are advancing, with E.ON eyeing OVO Energy at £550-600m. Nothing is confirmed.
OVO's 4m UK homes plus E.ON Next's 5.6m would total 9.6m - what could become the biggest UK energy supplier, ahead of Octopus (6.5m, 25%) and British Gas (10m, declining). The largest UK energy supplier consolidation since Bulb collapsed in 2021.
Status, early May 2026: Nothing signed; neither side has confirmed. EDF and Telecom Plus showed earlier interest. The deal could still fall through.
How SwitchInsights tracked this story: the reporting here is built on Sky News' May 2026 coverage, OVO's published 2023-24 financial position, and Watt-Logic's January 2026 analysis of OVO's standing. The deal was confirmed on 11 May 2026 - see our SwitchInsights follow-up on what happens next.
Is OVO Energy being sold? Why now
OVO's position is shakier than its scale suggests. Stephen Fitzpatrick founded OVO in 2009 on cheaper, greener energy and digital-first service. It grew fast, then absorbed customers from collapsed rivals in 2021-22.
Then 2022 hit. Limited hedging exposed OVO when wholesale prices surged. It lost half a million customers in 2023. Watt-Logic called the position "shaky" in early 2026, citing debt and a hard path to profit.
OVO prepayment meter Ofgem case: Ofgem named OVO, British Gas and Scottish Power for 70% of forced PPM installations in 2022-23. The OVO enforcement case is still open, outside the £18.6m May 2025 industry deal. Any buyer inherits this.
Who owns OVO Energy - and the Kaluza sale
Fitzpatrick still controls OVO at parent level and keeps Kaluza, its energy software platform, returning as Kaluza CEO in March 2026. Kaluza serves four utility clients across eight markets - a £1bn+ unicorn Kaluza sale was flagged in 2025. Expect a split if a deal lands: E.ON takes supply, Fitzpatrick keeps Kaluza.
E.ON Next review: who they are in the UK
E.ON SE is a Düsseldorf-based utility with ~50m customers across Europe. UK arm E.ON Next launched 2021 after E.ON bought npower's retail book (2m accounts).
The Kraken platform E.ON licenses from Octopus runs E.ON Next. OVO customers moved across would land on Kraken - a step up from OVO's systems.
"E.ON in advanced talks to buy OVO. Combined, 5.6m E.ON Next and OVO's 4m create a 9.6m supplier with ~28% of GB - larger than Octopus or British Gas."
- Sky News, 25 April 2026OVO's history: from challenger to question mark
2009OVO founded in Bristol
Fitzpatrick launches OVO on fixed-rate tariffs while the Big Six dominate.
2015-20191 million customers
Multiple Which? Recommended Provider awards. Passes 1m customers as the largest independent challenger.
2019SSE retail acquisition
OVO buys SSE's domestic book for £500m, quadrupling overnight. Kaluza launches the same year.
2021-22Crisis years
OVO absorbs collapsed-rival customers while wholesale costs spike. Fitzpatrick steps back; Buttress takes over.
2023PPM scandal hits OVO
Ofgem names OVO in 70% of warrant-based forced PPM installs. Case still open.
2025Sale options; Kaluza split
OVO explores capital raises or sale. Fitzpatrick returns to Kaluza, March 2026.
April 2026E.ON in advanced talks
Sky News reports a £550-600m deal for OVO retail. EDF and Telecom Plus also interested.
UK energy market share 2026: the new shape
UK energy supplier consolidation has run hard since 2021-22, when ~30 smaller suppliers collapsed. The market leans on three players: Octopus, British Gas (Centrica) and whoever wins E.ON/OVO.
An E.ON/OVO at 9.6m and 28% share would be different: British Gas scale, on Kraken tech, without the legacy complaints.
of UK domestic energy
if a deal completes
for OVO retail -
Kaluza likely excluded
vs Octopus (25%) and
British Gas (~20.9%)
CMA energy supplier merger review
A deal this size needs Competition and Markets Authority review. Phase 1 triggers at 25% share or £70m turnover. E.ON/OVO clears both.
Phase 1 runs up to 40 working days. If the CMA flags concerns - regional concentration, or loss of OVO as a price check - it can demand remedies or escalate to Phase 2 (up to 24 weeks).
The harder call: is a 28% supplier dominant when Ofgem's price cap sets unit rates? The cap cuts against price intervention; service quality could push the other way.
OVO Energy customers: what to do
In the short term: nothing. A deal this complex takes months to close, plus CMA review. OVO customers stay on current tariffs and direct debits until any migration is announced.
If a deal closes, OVO customers will likely move to E.ON Next on Kraken. The OVO brand may not survive. Past supplier transfers (npower-to-E.ON Next) are rarely seamless.
What happens if your energy supplier is sold (acquisition customer rights): No supplier moves you without consent. Ofgem holds tariff terms 30 days post-transfer with notice. You can switch any time. Fixed rates run for the full term, regardless of buyer.
For E.ON Next, the question is service capacity. 4m extra accounts strains any supplier. Bulb-into-Octopus (2022) and npower-into-E.ON Next (2021) followed the pattern: queries spike, waits extend, contact centres take months to settle.
E.ON Next customers: longer-term risks
E.ON Next tariffs, bills and accounts aren't immediately affected. The question: does the deal stretch management and systems? Octopus vs E.ON Next: Octopus leads on satisfaction, E.ON Next sits above British Gas.
What this means for the wider market
Three suppliers - Octopus, British Gas (Centrica) and E.ON/OVO - at 75% of domestic supply marks a sharp narrowing from fifteen years ago. Ofgem leans on the price cap. The years ahead will test that.
For Octopus, the dynamic shifts hard. It currently leads UK electricity with a strong brand and Kraken licensing income. A merged E.ON/OVO at 9.6m would take the lead.
Still uncertain: OVO brand future, Kaluza inclusion, CMA outcome, EDF re-entry. The deal could still fall through entirely.
OVO Energy E.ON merger: FAQ
Is E.ON buying OVO Energy?
Advanced talks for OVO's retail business at £550-600m. Nothing signed. EDF and Telecom Plus were earlier interested, so the deal could fall through.
How large would the combined E.ON OVO supplier be?
If a deal completes: 9.6m customers, ~28% of GB electricity - ahead of Octopus (6.5m, 25%) and British Gas. The biggest UK energy supplier.
Why is OVO Energy being sold?
Limited hedging left OVO exposed when wholesale prices surged in 2022. It lost half a million customers in 2023 and has explored sale options since 2025. Fitzpatrick keeps Kaluza separate.
What happens to OVO Energy customers if the deal goes through?
Nothing in the short term. Any migration moves OVO accounts to E.ON Next on Kraken. Ofgem holds tariff terms 30 days. Fixed rates run for the full term.
Should I switch from OVO?
Not because of the deal. Your tariff and rights are protected. Switch on price, not on the news - the merger doesn't change your switching rights.
Will the CMA approve the E.ON OVO merger?
If signed, it would clear the CMA's 25% share-of-supply test and the £70m turnover threshold. Phase 1 runs 40 working days; concerns can push it to Phase 2 (24 weeks).
How does the E.ON OVO merger affect Octopus Energy?
A merged E.ON/OVO at 9.6m takes Octopus's UK scale lead. Octopus keeps its brand, satisfaction and Kraken licensing income, plus Japan, Germany, Texas and Australia.