Ovo is set to become Britain’s second largest gas and electricity provider after striking a £500 million deal to buy larger rival SSE’s household supply arm.
The takeover will see Ovo add SSE’s 3.5 million households to its existing 1.5 million-strong customer base, catapulting it into the Big Six league of providers and second only to energy giant British Gas.
Around 8,000 staff working for the SSE energy services unit will also transfer to Ovo, which currently employs around 2,000.
SSE said it will do “all it can to ensure a smooth transition for customers and employees”, should the deal get the go-ahead from regulators.
It is expected to complete later this year or early in 2020.
It comes after SSE was forced to scrap its merger with Big Six rival npower last December after the Government’s energy price cap plans sent shockwaves through the industry.
SSE said there would be no immediate impact for consumers and they would still continue to see SSE branding on their bills for the meantime.
Ovo – which was founded 10 years ago – has agreed to use the SSE brand under licence for a period of time while it transfers over the bought business.
Speaking to PA news agency, Ovo founder and chief executive Stephen Fitzpatrick said the deal was a “bold move” but insisted the group and its systems were ready.
He said: “There’s a lot of work to do, but it feels like, for us, this is the start of a new exciting chapter.”