Eon-Ovo merger leaves three firms controlling three-quarters of UK homes
Eon’s acquisition of Ovo Energy will reduce the UK domestic market to three dominant suppliers, covering about 74% of households.
A competition watchdog has approved Eon’s purchase of Ovo Energy, creating a market where three firms - British Gas, Eon and Octopus Energy - will supply about 74% of UK households. Once the merger finalises, Eon will rank as the second-largest domestic supplier with a 25% share of electric and gas accounts, while Octopus and British Gas hold 26% and 23% respectively. The consolidation follows a wave of smaller providers exiting after the 2020-21 energy crisis, leaving the five biggest firms to control roughly 90% of the market.
Analysts caution that reduced competition may eventually push bills higher, though larger firms could offer greater stability and the capacity to develop new tariffs, such as electric-car packages. Existing customers will see no immediate changes to service or tariffs, and current contracts remain in force. The broader context includes rising wholesale costs and an upcoming increase in Ofgem’s price cap, which could raise the typical annual bill to £1,999.
Why it matters
The merger concentrates market power, affecting competition, price stability and consumer choice for most UK households.
In this story
