Ovoenergy

Market position

OVO moved from small challenger to one of the largest UK domestic suppliers, described variously as the country's second-largest supplier after British Gas following the SSE deal (around 5 million customers) and later as fourth-largest with approximately 4 million customers, having lost market share since its January 2020 peak. Sources describe it as part of the "New Big 6" and note that its sale to E.ON would make E.ON the largest UK domestic supplier at roughly 25-27% share, with five companies holding over 90% of the household market. Kaluza competes with Kraken, the platform spun out of Octopus Energy.

OVO has positioned itself on cheaper, greener and simpler energy, combining smaller-supplier pricing and service with the scale of a large supplier. Differentiators cited include being the first major UK energy company to remove coal and nuclear from its energy mix and offering 100% renewable electricity on green tariffs, time-of-use incentives (Power Move), bundled EV charging covering home and public charging at one fixed monthly price, in-house solar and battery installation, and the Kaluza energy management platform. It has moved away from a prior commitment to 50% renewable electricity as standard and stopped buying renewable certificates to offset fossil fuel purchases, citing limited environmental impact.

Technology

The company operates a consumer mobile app (iOS app rated 4.6 from around 18,000 UK ratings) providing energy insights, usage and cost tracking, meter reading submission, tariff and direct debit management, and payment including Apple Pay and Google Pay. It relies on smart metering for products such as Power Move and Charge Anytime smart EV charging, and has developed Kaluza, an energy management/energy intelligence software platform licensed to third parties including E.ON. OVO has also installed advanced storage heaters.

Go-to-market

Customer acquisition is through direct online switching and comparison channels, the OVO app, promotional offers and prize draws (for example a Tesco Clubcard points draw and Power Move's year-of-free-energy prize), discounted boiler and cover bundles, and a Beyond loyalty and rewards programme. Brand marketing has included sports and venue sponsorship: the Bristol leg of the Tour of Britain (2016), the Tour of Britain and The Women's Tour from 2017 (with equal prize money announced in March 2018, ending by 2021), and naming rights to Glasgow's OVO Hydro arena from October 2021 and OVO Arena Wembley, used to give customers ticket presales and VIP access. Growth has also come from acquiring the customer books of rival and failed suppliers.

Primarily UK residential energy consumers, including pay-monthly direct debit and pay-as-you-go/prepayment meter households; historically also domestic and business premises. Adjacent products target EV drivers, households considering solar and batteries, and homeowners needing boiler and home emergency cover.

Geography

Headquartered in Bristol, England (originally Gloucestershire-based), supplying domestic customers throughout the UK. Planned expansion into France, Italy, Japan, the Netherlands and Spain was scaled back in 2022, with all international subsidiaries other than Spain sold or dissolved.

History

OVO began trading energy in September 2009 and its entry was welcomed as increasing competition in a market criticised for high prices. In October 2013, Fitzpatrick gave evidence to the Energy and Climate Change Select Committee, arguing that wholesale gas prices had fallen contrary to Big Six assertions. By June 2017 OVO had 680,000 customers, a 2.5% domestic market share. It acquired Spark Energy in November 2018 after that supplier ceased trading, took on Economy Energy's 235,000 customers in January 2019, and completed the £500 million purchase of SSE Energy Services in January 2020. Mitsubishi Corporation bought a 20% stake in February 2019 at a £1bn valuation. Planned international expansion into France, Italy, Japan, the Netherlands and Spain was scaled back in 2022, with all international subsidiaries except Spain sold or dissolved. Fitzpatrick stepped down as CEO in 2022 after nine years, succeeded by COO Raman Bhatia. In June 2025 OVO and Iberdrola, owner of Scottish Power, were reported to be in exploratory merger talks; in May 2026 E.ON agreed to acquire the retail business.

Risks & controversies

OVO has faced repeated regulatory action, largely over overcharging and customer service. In January 2020 it agreed to pay £8.9m into Ofgem's voluntary redress fund after an investigation found undercharging, overcharging and inaccurate annual statements affecting more than half a million customers between 2015 and 2018. In March 2021 Ofgem's price-protection investigation found detriment to 240,563 OVO customers totalling over £2m, with redress of over £2.8m — the largest of 18 companies investigated. In May 2023 Ofgem found OVO had charged almost 11,000 customers above the Energy Price Guarantee cap, requiring refunds and compensation averaging £181 per customer plus a £10,000 redress payment; around £2m in refunds and compensation was reported. Fines for missing smart meter installation targets included £1.2m in August 2020 and £2.39m in November 2023. In January 2026 OVO was fined and ordered to pay £2.8m in compensation for failing to pass on government support to 11,646 customers over 19 months. Citizens Advice ranked OVO second worst for customer service in 2022, and numerous incorrect and inflated bills were reported by transferred former SSE customers. In September 2025 the Financial Times reported OVO Group had warned of "material uncertainty" over its ability to continue as a going concern amid a capitalisation plan needed for new Ofgem capital buffer requirements, and had taken a £60m loan from Cheyne Capital Management at a high compound interest rate; in February 2026 analyst Kathryn Porter wrote that OVO was one of five suppliers in breach of Ofgem capital obligations, refinancing with a sub-investment-grade loan at 12% plus an uplift.