OVO to sell UK energy retail business to E.ON
OVO Energy agreed to sell its UK energy retail business to E.ON , subject to regulatory approval. The deal includes OVO’s retail customers and employees supporting the business.
OVO also agreed to sell its Home Services business, which offers boiler insurance and boiler servicing, to Hometree .
The company said changing market conditions, stricter regulatory oversight, and higher financial resilience requirements reshaped the economics of the UK energy sector, making greater scale and access to long-term capital increasingly important.
Following the acquisition, E.ON will continue OVO’s existing energy intelligence platform agreement with Kaluza, which provides billing and energy management technology. The companies will also evaluate expanding Kaluza’s platform across other parts of the E.ON group outside the UK.
“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.” – Stephen Fitzpatrick, Founder of OVO.
“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.” – Dame Jayne-Anne Gadhia, Chair of OVO.
“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.” – Chris Houghton, CEO of OVO.
“This acquisition, alongside our partnership with Pollen Street Capital, marks a significant milestone for Hometree. Bringing OVO Home Services and CORGI HomePlan into the group is transformational – immediately increasing our scale and strengthening our position as the leading challenger in the UK home services market. Together, we are well placed to expand our offering and deliver greater peace of mind to homeowners, starting in the UK and, over time, across Europe. We also look forward to maintaining a close relationship with OVO Energy’s 4 million customer base through our long-term partnership as its exclusive provider of home services and residential renewable financing.” – Simon Phelan, Founder & CEO, Hometree.
