E.ON Next finalized its purchase of Ovo Energy on Thursday following approval from Britain’s competition regulator, despite ongoing concerns about market concentration and consumer choice. The transaction expands E.ON Next’s market share to 25%, or approximately 13.45 million gas and electricity accounts, making it the second-largest household energy supplier in Great Britain.
Octopus Energy remains the market leader with a 26% share and 14.3 million accounts, while British Gas holds third place with roughly 23% of the market and 12.5 million customers. The four million households currently served by Ovo will experience no immediate changes under the new ownership. When combined with EDF Energy and Scottish Power, five suppliers will control approximately 90% of Great Britain’s household energy supply market following the deal.
The consolidation represents a significant shift from a decade of efforts to reduce the dominance of the “Big Six” energy suppliers and increase competition. In 2016, a competition investigation found that customers were overpaying between £1.4 billion and £1.7 billion annually due to weak market competition, prompting initiatives to foster new market entrants. However, the sector experienced considerable upheaval, with dozens of suppliers exiting the market during the 2021/22 energy crisis, and Bulb Energy entering administration in 2022.
Industry analysts acknowledged the tension between consolidation and stability. Market experts noted that while larger suppliers provide operational stability—a benefit following the departure of numerous smaller competitors—the reduction in the number of providers may reduce pressure for competitive pricing and service innovation. The effectiveness of the merged entity in maintaining consumer choice and competitive pressure will be a key test in coming years, with observers noting that true differentiation among remaining suppliers remains uncertain.
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