E.ON Next finalized its purchase of Ovo Energy on Thursday following approval from Britain’s competition authority, consolidating the household energy market further. The transaction adds Ovo’s 4 million customers to E.ON Next’s existing 5.6 million accounts, bringing the combined entity’s market share to approximately 25 percent, or 13.45 million gas and electricity accounts. This positioning makes E.ON Next the second-largest supplier behind Octopus Energy, which holds 26 percent of the market, and ahead of British Gas at 23 percent.
The merger represents a significant shift in the competitive landscape, as the historic dominance of the “Big Six” energy suppliers has now consolidated into what industry observers describe as the “big three.” The five largest suppliers—Octopus Energy, E.ON Next, British Gas, EDF Energy, and Scottish Power—now control approximately 90 percent of Great Britain’s household energy supply market. This concentration represents a departure from efforts over the past decade to break up the dominant positions held by legacy suppliers and increase consumer choice.
Analysts have raised concerns about the implications for household customers and market competition. The energy sector faced significant disruption during the 2021-22 energy crisis, when approximately 30 suppliers ceased operations, leaving customers uncertain about their billing arrangements. While larger suppliers provide stability, experts note that reduced competition may diminish incentives for price reductions and service differentiation. The initial surge in new market entrants following a 2016 competition investigation had promised greater consumer choice, but the subsequent consolidation has reversed those gains.
E.ON UK’s leadership defended the transaction, characterizing the energy market as “fiercely competitive” and arguing that the company’s combined scale and flexibility would benefit customers. However, market observers indicated that a critical test lies ahead, with households that actively shop for energy deals potentially finding limited meaningful differences among the dominant suppliers’ offerings rather than genuinely distinct options.
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