E.ON completes Ovo takeover after CMA clearance

E.ON Next completed its takeover of Ovo Energy on Thursday 8 October 2026, according to the Guardian, after the Competition and Markets Authority (CMA) cleared the deal. The CMA’s case page records its clearance decision, and E.ON UK’s chief executive has defended the deal in public.

The Guardian reported that Octopus Energy, E.ON Next and British Gas now supply almost three-quarters of households in Great Britain. Our earlier version of this article could not confirm a merger or a 74% share. Both points are now backed by a primary source and by the Guardian’s figures, which are set out below.

What the CMA and E.ON have confirmed about the deal

The CMA’s case page describes the transaction as the anticipated acquisition by E.ON SE, through E.ON UK Limited, of OVO Energy Ltd. It records that the CMA cleared the deal at Phase 1, with the decision announced on 1 October 2026. Phase 1 is the first stage of a merger review, so the case did not go to a longer investigation.

The page also sets out how the review ran. The CMA issued an invitation to comment on 8 July 2026 and asked interested parties for their initial views on the effect on competition. It launched its formal merger inquiry on 2 September 2026.

Chris Norbury, chief executive of E.ON UK, rejected concerns about competition. The Guardian quoted him describing the market as “fiercely competitive” and saying the company’s “flexibility and scale” would allow it to “deliver for customers now and to transform for the energy system to come”.

How concentrated the energy market is now

According to the Guardian, E.ON Next already supplied 5.6 million households and Ovo supplied 4 million. Together they give E.ON Next a 25% share of the household market, which makes it Great Britain’s second-largest supplier. The Guardian put that at 13.45 million gas and electricity accounts, which is a different measure from the household counts above.

Adding the three shares gives 74%. The Guardian also reported that about 90% of the market is now held by five suppliers once EDF Energy and Scottish Power are included. By our arithmetic, that means about 16 homes in every 100 are with EDF and Scottish Power combined, and only about 10 in every 100 are with everyone else.

The comparison with 2016 needs care because the measures differ. The Guardian said the “Big Six” held about 85% of the market in 2016, when a CMA investigation warned that customers were overpaying by roughly £1.4bn to £1.7bn a year because of weak competition. The Department for Energy Security and Net Zero’s smart meter methodology note lists 13 large suppliers, including both E.ON Next and OVO.

What it means for customers

The Guardian reported that there will be no immediate change for the 4 million households supplied by Ovo. Nothing in our sources says tariffs, account details or contract terms will change, so there is no need to act on the day. If your supplier writes to you about changes, read the letter carefully and check it against your current terms.

Tom Goswell, energy supply lead at Cornwall Insight, said: “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.” He also noted that larger suppliers bring stability, after about 30 firms left the market following the 2021/22 energy crisis.

His warning concerned the longer term. “The concern with fewer suppliers is that the pressure to compete eases off, taking with it some of the incentive to keep prices low and offer something different,” he said. The test, he added, will be whether households who shop around find “a genuine range of deals waiting for them rather than three versions of the same thing”.

The practical steps are unchanged. Note your tariff name, unit rate and annual usage, compare fixed deals on an independent site, and check the term length and exit fees before you commit. If you are struggling to pay, speak to your supplier first.

Earlier reporting on bills and fixed deals

Our earlier article also covered the price cap, using an Express report dated 31 December 2024. Those figures date from January 2025 and should not be read as today’s prices. Ofgem’s cap then rose by 1.2% from Wednesday 1 January 2025, taking the typical annual bill from £1,717 to £1,738, which is £21 more a year or £1.75 a month.

At that time Uswitch said the average household could save up to £148 a year against the cap by moving to a 12-month fixed deal, based on deals available on 31 December. Its energy spokesman Ben Gallizzi described a possible further rise in April as “an early prediction” that “isn’t guaranteed”. The cap limits the price per kilowatt hour, not total spending, so households that use more still pay more.

Tim Jarvis, director general of markets at Ofgem, said at the time: “In the short-term though, anyone struggling with bills should speak to their supplier to make sure they’re getting the help they need.” That advice still applies. The size of any saving from a fixed deal today depends on current prices and your own usage, which our sources do not cover.

Your questions answered

Has the Eon Ovo merger been confirmed?

Yes. The CMA’s case page records its clearance of E.ON’s acquisition of Ovo Energy, announced on 1 October 2026. The Guardian reported that the takeover concluded on Thursday 8 October 2026, and quoted E.ON UK’s chief executive on the deal.

Why is Ovo selling to Eon?

Our sources do not give the sellers’ reasons, so we cannot say. Mr Norbury said E.ON’s “flexibility and scale” would let it serve customers and prepare for the energy system to come. The Guardian noted that Ovo itself had grown in 2019 by buying SSE’s household supply business.

Will my bill change because of the takeover?

The Guardian reported no immediate change for Ovo’s 4 million households. Your bill will still depend on your tariff and your usage. Compare deals against your own figures, and check any letter from your supplier about changes.

Does the price cap limit my total energy bill?

No. According to the Express report, the cap limits the price per kWh, not the total, so a household using more energy pays more. The £1,738 typical bill was an example from January 2025, not a ceiling.