CMA clears E.ON takeover of OVO Energy

What the CMA decided

On 1 October 2026 the Competition and Markets Authority announced that it has cleared the anticipated acquisition by E.ON SE, through E.ON UK Limited, of OVO Energy Ltd. The decision was taken at Phase 1. The CMA states that the full text of the decision will be published shortly. The case remains listed as open on GOV.UK, with the case type recorded as Mergers, the market sector as Utilities, and the case state as open.

The published record sets out a short and clear timetable. The case was first published on 8 July 2026, when the invitation to comment opened. That invitation to comment closed on 23 July 2026. The CMA announced the launch of its merger inquiry by notice to the parties on 2 September 2026 and published a commencement notice. The statutory timetable records the decision announcement on 1 October 2026. The table below sets out those dates and actions in order.

Two points about the record are worth noting. First, the CMA states that the full text of the decision will be published shortly. Until that text appears, the case page carries the outcome and the timetable rather than the reasoning. Second, the case remains listed as open on GOV.UK. That listing reflects the administrative state of the case page and the fact that the full decision text is still to be published. The CMA case page is the primary record of the decision and carries the statutory timetable.

What Phase 1 clearance means

The CMA carries out merger work under Part 3 of the Enterprise Act 2002. In the UK merger regime, a Phase 1 review considers whether a merger may be expected to result in a substantial lessening of competition. That is the test. It is a competition assessment, and it is not an approval of prices, service, branding or anything else. A clearance decision means the CMA has concluded its review at the first stage. It does not mean the CMA has endorsed the deal in any wider sense, and it does not mean the CMA has assessed matters outside its competition remit.

Phase 1 is the first stage of the process. Where concerns are found at Phase 1, the case can be referred for a Phase 2 investigation by an independent panel, or the parties can offer undertakings to resolve the concerns. Clearance at Phase 1 ends the process. There is no referral to Phase 2 and no undertakings process, because the review has concluded. The practical effect is that the CMA's merger review of this transaction is complete.

It is important to separate what the decision does from what it does not do. The decision is a competition decision under the Enterprise Act 2002. It is not a decision about household bills, tariff structures, customer service standards, smart meter rollouts or anything of that kind. Those matters sit with the companies and, where relevant, with Ofgem as the energy regulator. Because the CMA states that the full text of the decision will be published shortly, the reasoning behind the clearance is not yet in the public record. The outcome is known; the detailed explanation is to follow.

What it means for customers of either supplier

For customers of either supplier, a clearance decision changes nothing by itself. Existing contracts, tariffs, meters and account numbers continue. If you hold an account with either supplier, you do not need to do anything as a result of the CMA's decision. There is no action to take, no form to complete and no need to contact either company about the decision. Any change to branding, tariffs or account handling would come from the companies and would be notified separately. Until such a notification arrives, the position on your account is unchanged.

Certain protections apply regardless of ownership. The energy price cap set by Ofgem limits the unit rates and standing charges that can be charged on a standard variable tariff, and it applies to licensed suppliers. Household energy customers also have the right to switch supplier. If a complaint arises, household energy customers can complain to their supplier and, if the complaint is not resolved after eight weeks or the supplier issues a deadlock letter, can take the complaint to the Energy Ombudsman. Those routes do not depend on who owns the supplier.

It is worth being precise about the limits of the decision. The CMA's clearance is a competition decision, and it does not set or approve prices, service levels or contract terms. It does not change the price cap, the switching rules or the complaints process. It does not alter the terms of any existing tariff. If you are a customer of either supplier and you have a question about your account, the usual channels apply: your supplier first, and the Energy Ombudsman if the complaint is not resolved after eight weeks or a deadlock letter is issued.

What to watch next

Three things are worth watching, stated neutrally. The first is the publication of the full decision text on the case page. The CMA states that the full text of the decision will be published shortly. Until it appears, the case page carries the outcome and the timetable rather than the reasoning. The second is any announcement from the companies about completion. The CMA has cleared the anticipated acquisition; any statement about completion would come from the companies themselves. The third is any later communication about tariffs or brands. Any change to branding, tariffs or account handling would come from the companies and would be notified separately.

The CMA case page is the primary record and carries the statutory timetable. The case remains listed as open on GOV.UK, with the case type recorded as Mergers, the market sector as Utilities, and the case state as open. The dates on that page are the dates to rely on: 8 July 2026 for first publication and the opening of the invitation to comment, 23 July 2026 for the close of that invitation, 2 September 2026 for the launch of the merger inquiry by notice to the parties, and 1 October 2026 for the Phase 1 decision and clearance.

For customers, the position remains simple. The decision does not require you to do anything. Existing contracts, tariffs, meters and account numbers continue. The protections that apply regardless of ownership, including the energy price cap on standard variable tariffs, the right to switch supplier, and the complaints route through the supplier and then the Energy Ombudsman after eight weeks or on a deadlock letter, are unchanged. Further detail will come from the CMA when the full decision text is published, and from the companies if and when they make announcements of their own.

Source: GOV.UK: the CMA case page.

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Frequently asked questions

What did the CMA announce on 1 October 2026?

On 1 October 2026 the CMA announced that it has cleared the anticipated acquisition by E.ON SE, through E.ON UK Limited, of OVO Energy Ltd. The decision was taken at Phase 1. The CMA states that the full text of the decision will be published shortly, and the case remains listed as open on GOV.UK.

What does Phase 1 clearance mean?

In the UK merger regime, a Phase 1 review considers whether a merger may be expected to result in a substantial lessening of competition. Cases that raise concerns at Phase 1 may be referred for a Phase 2 investigation or resolved through undertakings, while clearance at Phase 1 concludes the CMA's review. The CMA carries out merger work under Part 3 of the Enterprise Act 2002.

Do customers of E.ON or OVO Energy need to do anything?

No. A clearance decision changes nothing by itself. Existing contracts, tariffs, meters and account numbers continue. Any change to branding, tariffs or account handling would come from the companies and would be notified separately.

Does the decision affect the energy price cap or the right to switch?

No. The energy price cap set by Ofgem limits the unit rates and standing charges that can be charged on a standard variable tariff, and it applies to licensed suppliers. Household energy customers can also switch supplier. Those protections apply regardless of ownership and are unchanged by the CMA's decision.

How can a complaint be taken further?

Household energy customers can complain to their supplier and, if the complaint is not resolved after eight weeks or the supplier issues a deadlock letter, can take the complaint to the Energy Ombudsman.