OVO Energy has agreed to sell its UK energy retail business to E.ON, subject to regulatory approvals. The transaction includes OVO's retail customers and all employees supporting them. Until the approval process completes, expected later this year, OVO and E.ON will continue to operate as separate companies.
OVO has also agreed to sell its Home Services business, which provides boiler insurance and servicing, to Hometree, also pending regulatory approval.
Following a review of strategic options, OVO concluded that a sale to E.ON provides the strongest long-term platform for the business and its customers. Over time, being part of a larger energy group is expected to support continued investment in products and services that help households manage energy use and adopt low-carbon technologies.
OVO will work closely with E.ON and Hometree through the regulatory process to ensure a smooth transition. On completion of the acquisition, E.ON will continue the existing energy intelligence platform licence agreement with Kaluza for OVO's customer base. Kaluza simplifies energy billing, reduces costs, and enables faster product innovation to support the energy transition. The parties will also evaluate adopting Kaluza across the wider E.ON group outside the UK.
Statements from OVO Leadership
Stephen Fitzpatrick, Founder of OVO, said: "Sixteen years ago I started OVO with a simple belief: energy should be cheaper, greener and simpler and it should work for customers. That belief built one of the country's largest energy companies and pioneered a completely new customer centric approach. The team has consistently pushed the rest of the industry to raise its game and I am genuinely proud of what we have built. Energy retail is now more regulated, more capital intensive and increasingly dependent on long-term investment and scale. In that context, bringing OVO together with E.ON is the right next step for customers, for colleagues, and for the long-term commitment that decarbonisation requires."
Dame Jayne-Anne Gadhia, Chair of OVO, commented: "OVO is proud of the role it has played as a challenger brand over the past almost 20 years. Supported by our investors, we have powered multiple innovations in products and services for consumers, and pushed forward a greener, more affordable, and more efficient energy system."
Chris Houghton, CEO of OVO, stated: "The energy market has fundamentally changed in recent years. OVO was founded to challenge the status quo, and we've built a strong retail business focused on delivering for customers and supporting the transition to cleaner energy. As the market has evolved, scale and access to significant long-term capital for the energy transition have become non-negotiable. Following a thorough review, we believe this decision gives the business the strongest footing for the future. I'm incredibly proud of what the team at OVO has built, and we will work closely with E.ON and Hometree to support our people and ensure a smooth transition for customers."
