E.ON Next Closes Ovo Deal, 73% of UK Homes Now Have Three Suppliers

E.ON Next completed its takeover of Ovo Energy on Thursday, leaving almost three-quarters of British households served by just three energy suppliers. The Competition and Markets Authority cleared the transaction despite concerns that the shrinking supplier pool would leave bill payers with less choice and weaker pressure on prices.

What's the deal?

E.ON Next, one of the country's largest household energy retailers, bought Ovo Energy in a transaction that closed on Thursday. Britain's competition watchdog signed off on the acquisition, even as it acknowledged fresh concerns about a retail market that has lost another major independent brand.

Ovo Energy becomes part of the E.ON Next retail portfolio from this point forward. Customers on both sides continue to be served under their existing contracts and tariffs, with no immediate change to billing or supply in the short term. The combination removes one of the last large independent retail energy names from the British market.

How concentrated is the UK retail energy market now?

Almost three-quarters of households in Great Britain draw their energy from one of just three suppliers. E.ON Next's combined book — now including Ovo Energy's customers — sits alongside the two other major suppliers.

The watchdog did not break out the precise customer share for each of the three. The combined figure of nearly 73% sets a new high-water mark for concentration in Britain's retail energy market.

The shift to a so-called "big three" reflects years of consolidation in British energy retail. Each successive deal leaves households with fewer destinations when their current tariff ends. The narrower menu raises the bar for any new entrant hoping to compete at scale. For households comparing tariffs at the end of their fixed deals, the shrinking field means fewer genuinely independent price benchmarks.

Why did the regulator raise concerns?

The competition watchdog attached two specific worries to its clearance:

• Less choice. Fewer suppliers in the market leave bill payers with fewer destinations when shopping around for a tariff.
• Weaker price pressure. A thinner supplier pool reduces the incentive for each company to compete on price, leaving households with less leverage to push bills down over time.

The watchdog did not treat those concerns as a reason to block the deal. Clearance came with the worries noted on the record rather than enforced through formal conditions.

What does this change for households?

For bill payers, the practical effect is that one of the last large independent retail energy brands has disappeared. Customers who used Ovo Energy as an alternative to one of the dominant players now sit inside the E.ON Next book.

Switching has historically been the regulator's main lever for keeping prices in check. With the supplier pool narrowing, that lever now points to a smaller set of destinations. Households may find fewer meaningfully different options when shopping for a new deal.

What happens next?

E.ON Next will absorb Ovo Energy's retail operations into its existing brand structure. Customer accounts continue to be served under current terms in the near term.

The watchdog's clearance, delivered with attached concerns, will shape how regulators treat the next retail energy transaction. As the supplier pool shrinks toward three, each remaining tie-up will face a heavier burden of proof that competition still works for British bill payers.