TL;DR
E.ON announced on 11 May 2026 a planned acquisition of UK energy supplier OVO. The combined business would be one of the largest energy suppliers in the UK. The deal needs regulatory approval, including from the Competition and Markets Authority, and is expected to close in the second half of 2026. There is no immediate change for customers of either supplier.
Last reviewed: 14 May 2026
Key facts
- E.ON announced the planned acquisition of OVO on 11 May 2026.
- E.ON serves around 5.6 million UK customers; OVO adds around 4 million.
- The deal requires regulatory approval, including from the CMA.
- Completion is expected in the second half of 2026.
- OVO is separately selling its Home Services business to Hometree.
What was announced
On 11 May 2026 the German energy group E.ON said it had agreed to acquire the UK residential energy supplier OVO. E.ON already supplies around 5.6 million customers in the UK through E.ON Next. OVO serves around 4 million customers. Combined, the business would rank among the largest energy suppliers in the country.
Separately, OVO agreed to sell its Home Services arm, which provides boiler insurance and servicing, to Hometree. Both transactions are subject to regulatory approval.
Why the deal is happening
OVO said the UK energy market has changed significantly in recent years, with tougher expectations on financial resilience and increased regulatory oversight. Ofgem rules now require suppliers to hold minimum capital buffers to absorb market shocks of the kind seen during the 2022 energy crisis. OVO said these changes have altered the economics of standalone energy retail, and that the market is expected to favour suppliers with greater scale and access to long-term capital.
What needs to happen next
The acquisition is subject to clearance by UK regulatory authorities, including the Competition and Markets Authority. The CMA reviews mergers that may reduce competition. Until the process completes, expected in the second half of 2026, E.ON and OVO remain fully independent companies.
What it means for the wider market
The UK residential energy retail market is already concentrated among a small number of large suppliers. A combined E.ON and OVO would increase that concentration, which is part of why the CMA review matters. The deal reflects a broader pattern in which tighter financial-resilience rules and the cost of serving customers have pushed the sector towards consolidation.
What customers should watch
There is no action for customers to take now. Over the longer term, points to watch include any changes to tariffs, customer service arrangements and smart-tariff or time-of-use products once the deal completes. Official updates will come from the suppliers and, on competition matters, from the CMA.
Frequently asked questions
Has the E.ON and OVO deal completed?
No. It was announced on 11 May 2026 and is subject to regulatory approval. Completion is expected in the second half of 2026.
Will my tariff change?
The companies have said existing tariffs are honoured during the regulatory review period and there is no immediate change for customers of either supplier.
Which regulator has to approve it?
UK regulatory authorities including the Competition and Markets Authority, which reviews mergers for their effect on competition.
How big would the combined supplier be?
E.ON serves around 5.6 million UK customers and OVO around 4 million, which would place the combined business among the largest energy suppliers in the UK.
What is happening to OVO Home Services?
OVO agreed to sell its Home Services business, which provides boiler insurance and servicing, to Hometree, also subject to regulatory approval.
