The proposed acquisition is described as a major investment by E.ON Group in the UK market and forms part of its strategy to accelerate the shift towards consumer energy flexibility.
The deal aims to put greater control in the hands of customers, reduce bills, and redesign the energy system to be more people-focused.
CEO of E.ON UK, Chris Norbury, said: “For decades the UK energy system focused too much on those upstream.
“Now is our opportunity to change that.
“Solar, batteries, EVs and a retailer built to orchestrate.
“That is what this deal is about: customers in control and new energy that works for everyone.”
The company believes the acquisition will strengthen its core retail business and enhance its ability to deliver greater value to customers.
The combined business will serve about 9.6 million customers, surpassing the current top supplier, Octopus.
The firms did not disclose the value of the deal, although previous reports indicated that it could be as much as £600 million.
The acquisition is subject to regulatory approval, which E.ON expects to receive in the second half of 2026.
Until then, E.ON and OVO will continue to operate as independent businesses.
On completion, E.ON will maintain the existing energy intelligence platform licence agreement with Kaluza for OVO’s customer base.
Kaluza simplifies energy billing, reduces cost to serve and enables faster product innovation to support the energy transition.
E.ON said it will also evaluate the potential adoption of Kaluza across the wider E.ON group outside of the UK.
What does this mean for existing E.ON and OVO customers?
Both E.ON Next and OVO customers will see no immediate changes during the regulatory review period.
Existing tariffs will be honoured in full and service will continue unchanged.
E.ON says its focus is on building a customer-led energy system.
The company has already introduced time-of-use tariffs that reward customers for shifting energy use to cheaper, off-peak periods.
It has also invested in smart energy assets such as home batteries and EV charging, and offers integrated energy solutions designed to lower long-term bills.
By turning homes into active participants in the energy network, E.ON aims to create value from every unit of energy that is shifted, stored, or self-generated—value that would otherwise be captured elsewhere in the supply chain.
The company argues that greater scale will increase these benefits both for individuals and for the wider system.
As the UK energy market continues to evolve, flexibility is seen by E.ON as key to controlling costs and improving system resilience.
Mr Norbury said: “That is the principle behind this deal.
“It is not about scale for its own sake.
“It is about building a retailer with the capability, the technology and the customer base to make new energy work for everyone.
“We chose OVO because it’s a modern digitally native business with great people and a shared belief that innovation is what can make energy affordable and sustainable for everyone.
“The future of energy is flexible, digital and customer-led.
“Our job is to make new energy work for everyone.”
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