E.ON and Ovo set to announce huge update for customers

Energy giant E.ON is reportedly close to a deal to acquire Ovo, a move that would create a UK energy giant serving nearly 10 million customers.

The two companies are targeting next week to officially announce the deal, with an agreement expected in the coming days.

The merger would combine E.ON’s 5.7 million customers with Ovo’s 4 million.

Ovo has recently faced major challenges, warning of a “material uncertainty” over its future in its latest financial accounts.

The company was reprimanded by Ofgem last year for failing to meet capital requirements, resulting in significant cost-cutting and job losses.

Ovo has spent several months seeking a buyer or new investment.

The situation became more precarious after former chief executive David Buttress stepped down during the funding search.

The deal is not yet guaranteed and could still be delayed, according to industry sources.

Ovo was founded in 2009 by Stephen Fitzpatrick as a challenger to the big energy companies.

Its rapid growth was fuelled by the 2020 acquisition of SSE’s household energy business.

E.On boss calls for energy bills support to be ‘targeted’

The boss of E.On UK has urged the Government to target any energy bills support to those most in need, as he insisted the supplier was “working really hard” to limit the price shock facing households over the summer.

Energy bills are expected to increase substantially from July when Ofgem sets its next price cap, due a recent spike in oil and gas prices caused by war in the Middle East.

Chris Norbury, chief executive of E.On UK, one of the UK’s biggest energy suppliers, told the Press Association: “It is a picture that moves every day.

“We spend a lot of time anyway, and particularly at the moment, with the energy markets team looking at what’s happening to wholesale markets through the observation window for the price cap.”