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Chart of the Week

2020

E.ON UK and npower: When 2 become 1

Molly Lloyd Analyst

Recent acquisitions are changing the face of the non-domestic supply market according to our Business Market Share Survey for Q220 (with a reporting date of 30 April 2020). In this 'Chart of the week' we look at what the market will be like once the E.ON UK and npower merger is complete. Under the proposals announced in May 2020, E.ON Group will merge npower’s I&C arm, npower Business Solutions, with E.ON UK’s I&C unit. Under the proposal the two portfolios will be integrated by the end of 2021 with the merger leading to significant changes in the rankings for the larger suppliers, most notably in the electricity market. Figure 1 shows that collectively the two suppliers held 22.0% electricity market share by I&C volume at 30 April 2020, which would see E.ON UK become the largest supplier in this segment under the current customer base. EDF Energy, currently positioned in first, would fall to second position, 1.8% behind the combined business. The I&C merger follows an earlier announcement in E.ON Group’s Q319 financial report to combine the residential and SME portfolios of the two suppliers onto a new customer platform called E.ONnext. The agreement was made with Octopus Group’s Kraken Technologies which stated that npower’s customers would migrate to the platform during Spring 2020, followed by E.ON UK customers in 2021. In August, npower did not issue new pricebooks and was actively redirecting customers away from ...

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