E.ON Next deal to buy Ovo Energy leaves UK with just ‘big three’ energy suppliers
Competition watchdog clears takeover despite concerns that suppliers will have less incentive to lower bills Almost three-quarters of households in Great Britain are now served by just three energy suppliers, after E.ON Next completed a deal to buy Ovo Energy despite fresh concerns about competition in the energy market. The takeover concluded on Thursday after Britain’s competition watchdog…
The acquisition of Ovo Energy by E.ON Next has reduced the number of energy suppliers in the UK from nine to just three, leaving the market dominated by "the big three." Despite competition watchdog approval, concerns remain about reduced incentives for suppliers to lower bills and less choice for consumers. E.ON Next, with 5.6 million customers, will control 25% of the household energy market, narrowly behind Octopus Energy at 26% and ahead of British Gas at 23%.
This development reverses the decade-long effort to break the dominance of the "Big Six" suppliers, who once held 85% of the market in 2016. E.ON UK's CEO described the market as "fiercely competitive," while Cornwall Insight's Tom Goswell noted the importance of stability provided by larger suppliers, warning that reduced competition could lead to higher prices and fewer options for consumers.
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