Ovo is about to develop into the UK’s second largest energy provider after it agreed to purchase SSE’s retail enterprise for £500m.
Ovo is already the UK’s largest impartial energy provider, with 1.5 million clients and about 2,000 workers.
But it’ll now tackle SSE’s 3.5 million clients and eight,000 workers, making it second solely to British Gas.
SSE mentioned it could “do all it can to ensure a smooth transition for customers and employees”.
The deal is predicted to be accomplished in late 2019 or early 2020.
SSE mentioned there can be no instant impression on clients after completion, and that the SSE model can be operated by Ovo below licence for a interval, “allowing time for a phased and carefully managed migration and continued high standards of customer service”.
SSE – one of many so-called Big Six energy suppliers – had introduced in May that it deliberate to dump its energy providers division after greater than 500,000 households switched to a new provider within the 12 months to April. The firm mentioned it could promote or float its energy providers arm by the second half of 2020.
In November final 12 months, a proposed merger of SSE’s family provide arm with rival Npower was known as off, with SSE blaming “very challenging market conditions”.
Stephen Murray, energy skilled at MoneySuperMarket, mentioned Ovo’s deal to purchase SSE’s enterprise “will enhance the ever-growing competition for customers”.
“The likes of Ovo, Shell, Bulb and Octopus mean there’s a base of emerging suppliers who are continuing to challenge the Big Six in the domestic energy market.”