E.ON Next Acquires Ovo Energy to Become UK's Second-Largest Supplier

E.ON Next completed the acquisition of Ovo Energy on Thursday, establishing itself as the second-largest energy supplier in Great Britain. The deal, which received clearance from the national competition watchdog, gives the company a 25% market share and a customer base of 13.45 million gas and electricity accounts.

This consolidation creates a market dominated by a big three: Octopus Energy, E.ON Next, and British Gas. Together, these three providers now serve nearly three-quarters of all households, with Octopus Energy holding the top spot at 26% and British Gas following at 23%.

Chief executive of E.ON UK Chris Norbury defended the move, describing the energy market as "fiercely competitive." However, critics and analysts warn that the shrinking number of suppliers may reduce consumer choice and diminish incentives for companies to lower energy bills. The acquisition effectively reverses a decade of regulatory and market efforts intended to dismantle the dominance of the original Big Six suppliers to lower costs for consumers.