French EDF Energy in talks to buy British So Energy as UK supply market consolidates
France's EDF Energy is reportedly in discussions to buy So Energy, the smaller British supplier whose Irish parent company has put it up for sale, in a deal that would add to a renewed wave of consolidation among UK gas and electricity retailers.
French energy company EDF Energy is engaged in discussions to potentially acquire British So Energy, according to Sky News. The move follows a process initiated by So Energy's Irish parent company, ESB, which is evaluating divestment options following a strategic review. So Energy currently serves around 300,000 household electricity customers and was established in 2015.
The acquisition would likely focus on the customer base rather than the entire company. EDF is pursuing the deal due to its desire to increase its scale in a market where it has been losing ground to competitors such as Octopus Energy and British Gas. The talks coincide with rising energy costs for British households, with the price cap increased by 4% to £1,723 per year for the upcoming season.
Additionally, government policy changes, such as the scrapping of VAT on domestic energy bills by newly appointed Prime Minister Andy Burnham, further complicate the situation. As of now, no agreement has been reached between the parties involved.
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