E.ON Next has finalized its acquisition of Ovo Energy, cementing a market shift that leaves three major suppliers serving nearly three-quarters of British households. The deal, which cleared regulatory review by the Competition and Markets Authority, makes E.ON the second-largest energy provider in Great Britain with 25% of the market.
Market Consolidation and the Rise of the Big Three
The completion of the E.ON Next deal on October 8, 2026, marks a significant milestone in the restructuring of the UK energy sector. With the integration of Ovo’s four million customers into its existing base of 5.6 million, E.ON now commands a 25% share of household energy accounts, totaling millions of gas and electricity accounts. This positions the company as the second-largest supplier in Great Britain, trailing only Octopus Energy, which holds a 26% share, and placing it ahead of British Gas, which currently serves 23% of the market.
Together, these three firms now control roughly 74% of the domestic energy market. When accounting for EDF Energy and Scottish Power, five suppliers effectively manage 90% of the market. This concentration represents a stark departure from the industry structure in 2016, when the “Big Six”—British Gas, EDF Energy, E.ON UK, SSE, Scottish Power, and npower—dominated 85% of the sector. At that time, a landmark investigation by the Competition and Markets Authority warned that weak competition resulted in consumers overpaying by approximately £1.4 billion to £1.7 billion annually.
CMA Clears Merger Following Strategic Review
The Competition and Markets Authority (CMA) decided against referring the acquisition for an in-depth, second-phase investigation, clearing the path for the merger to proceed. The regulatory approval was confirmed on October 1, 2026. While the exact value of the transaction remains undisclosed, reports from the time of the initial announcement in May suggested the deal could be worth as much as £600 million ($795 million). Mayfair Equity Partners, which had invested in Ovo in 2015, saw the company through this transition as it moved forward with a sale process following a strategic review.
For Ovo, which was founded by Stephen Fitzpatrick in 2009, the sale follows years of financial pressure. The company had previously noted in its accounts that material uncertainty
existed regarding its future after failing to meet specific financial targets. The firm acknowledged that changes in regulatory demands and expectations for financial resilience had altered the economics of the sector,
ultimately leading the company to pursue a sale.
Industry Stability Versus Competitive Pressure
The shift toward fewer, larger suppliers has prompted debate regarding the long-term health of the market. Tom Goswell, energy supply lead at the consultancy Cornwall Insight, noted that the transition from a “big six” to a “big three” raises legitimate concerns about household choice. Goswell emphasized that while larger suppliers bring stability—a trait not to be dismissed lightly after roughly 30 firms exited the market during the 2021/22 energy crisis—the reduction in competition may dampen the incentive to keep prices low or offer unique services.
“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. Larger suppliers do bring with them a degree of stability, and after about 30 firms dropped out of the market, leaving customers wondering who would be sending their next bill, stability is not something to dismiss lightly.”
Tom Goswell, Energy supply lead at Cornwall Insight
Marc Spieker, Chief Operating Officer Commercial at E.ON, described the acquisition as a critical milestone for the company’s UK retail business. Spieker noted that the UK is a vital growth market for E.ON, particularly regarding customer-focused energy solutions and flexibility.
Impact on Customers and Employees
For the four million households currently supplied by Ovo, the company has confirmed there will be no immediate change to services or billing. E.ON has stated that existing tariffs will be honored and customer service channels will remain operational as they were prior to the acquisition. However, the labor implications remain a point of focus.
E.ON’s financial position remains a subject of analyst attention. As of October 7, 2026, the company held a market capitalization of EUR 44.5 billion. Trading at EUR 16.99 on the Lang & Schwarz exchange, the stock price sits within its 52-week range of EUR 14.98 to EUR 20.39. Berenberg analyst Andrew Fisher recently reiterated a Buy rating on the stock with a EUR 21.00 price target, citing structural growth trends observed following the German Corporate Conference.