The Competition and Markets Authority (CMA) has cleared E.ON’s planned acquisition of OVO Energy without referring it for an in-depth investigation. The decision was taken on 1 October 2026 and the full reasoning was published on 6 October. E.ON agreed to buy OVO’s retail energy business from OVO Group on 11 May 2026; OVO had UK turnover of about £5 billion in its 2025 financial year.
The deal brings together two of Great Britain’s biggest household suppliers. On the CMA’s figures, the combined business would become the largest supplier of household electricity to both prepayment and other customers, with a share of 30–40% among customers who do not pay by prepayment meter. In gas it would rank second for prepayment customers and third for everyone else, behind British Gas and Octopus Energy. Neither company supplies homes in Northern Ireland.
Why the CMA was not concerned
The watchdog concluded that E.ON and OVO are not particularly close rivals. Switching data for 2025 showed each company gained and lost customers mainly to other large suppliers, and at most each was the other’s third-largest source of switching. Internal documents showed both firms watched Octopus, British Gas, EDF and Scottish Power as closely as each other, and more recently the fast-growing newcomer Fuse Energy.
OVO’s financial position also weighed in the analysis. It has operated under restrictions since Ofgem’s minimum capital requirement for suppliers took effect on 31 March 2025, because it could not meet the target. Ofgem told the CMA that OVO was unlikely to meet it by 2031. Rival suppliers described OVO as a past innovator whose ability to compete had been reduced by these constraints, and OVO lost noticeably more customers in 2025 than in 2024.
Most third parties raised no objection. Two voiced general concerns about rising concentration and the loss of a major supplier, and some told the CMA that capital rules, the price cap and the smart meter rollout make it harder for new firms to enter and grow.
What it means for customers
The clearance does not change anyone’s tariff. Households on standard variable tariffs remain covered by the Ofgem price cap, and any later changes to accounts, tariffs or customer service would be decisions for the companies themselves.
One respondent told the CMA that consolidation has become a feature of the energy sector, and the deal adds to it: the combined group joins British Gas and Octopus as one of a handful of very large suppliers. The CMA said the deal was also being reviewed by competition authorities in Denmark. For the current state of household bills, see our explainer on the price cap and bills this winter.