Ovo energy customers urged not to panic as takeover planned

An important development from the financial markets: Ovo energy customers urged not to panic as takeover plannedJust now Share Save Add as preferred on GoogleKevin PeacheyCost of living correspondentGetty ImagesConsumer groups have urged customers of energy supplier Ovo not to panic after rival E. On announced plans to buy the company. All existing tariffs will be honoured in full and their gas and electricity service will be unaffected under the planned deal, consumer group Which?

The takeover is set to create Britain's largest energy supplier, with more customers than the current top supplier, Octopus. 6 million customers, and Ovo, with four million customers, will continue to operate separately before any decision on a deal being approved, which could come later this year. The value of the deal has not been disclosed, though previous reports have estimated it could be worth as much as £600m.

Economic Details

The takeover will be checked by regulators, before any approval is granted. Both firms said there would be no change for customers while regulators reviewed the deal and that tariffs - such as fixed deals - would be honoured for the duration of the contract. Emily Seymour, energy editor at consumer group Which?

, said: "If you're an Ovo customer, don't panic, your gas and electricity supply will continue as usual. On have assured customers that existing tariffs will be honoured in full and service will continue unchanged. You don't need to do anything and you're still able to switch supplier if you wish.

"Sabrina Hoque, from the price comparison website Uswitch, said that Ovo customers might be nervous. But she added that, even if the deal were approved, credit balances would be protected as customers would transferred across automatically. Marc Spieker, chief operating officer commercial at E.

Analyst Views

On, said that the UK was an important growth market for the company. "Energy flexibility and electrification are becoming increasingly important and are critical to the success of the energy transition," he said. On, we are passionate about developing solutions that enable customers across Europe to play an active role in making our energy systems both reliable and affordable.

"Stephen Fitzpatrick, founder of Ovo, said the planned deal was the "right next step" for customers, staff and the zero-carbon transition.

Financial markets are tracking the development closely as investors assess the likely impact.