Octopus Energy merges with Octopus Renewables, E.ON sees turnaround in UK retail business
Octopus Energy continues to make the headlines after it announced that it is merging with its consumer supply business with Octopus Renewables in a £3 billion deal which could see it providing green energy to 50 million customers across Europe within six years.
International goals
The energy supplier has grown rapidly over the last few years and is now ranked as the fifth largest in the UK. Last year the company outlined its plans for growth overseas especially across Europe and the United States of America.
The deal will see Octopus Energy merge with its sister company Octopus Renewables in a move that will add 300 renewable energy projects, across the world to its portfolio and will see the company able to provide a further 1.2 million homes with renewable energy.
"We are absolutely thrilled to join forces with Octopus Renewables, bringing the supply and the generation side of energy together under one roof," he said. "This move will allow us to create a business that is unrivalled on the global stage; by combining our tech and consumer-led approach with the fund management expertise of Octopus Renewables, we can change the entire energy lifecycle, make every green electron matter, and deliver the green energy transition faster and cheaper for everyone," said Greg Jackson, CEO of Octopus Energy Group.
Last year Octopus achieved double ‘unicorn status’ after it was valued at $2 billion. The massive growth came just five years after the company began providing electricity and gas to the energy retail market.
Octopus Renewable meanwhile was founded 21 years ago and owns a number of solar and wind projects across the UK and has received massive investment into new renewables projects.
Also read: Octopus Energy aiming high as it seeks to become the UK’s largest energy supplier
Turnaround in fortunes for E.ON
In other news energy supplier E.ON has revealed that it has managed to turnaround its fortunes in the UK energy market following a torrid few years and is on course to recover quicker than initially expected.
The findings come from the companies 2020 full year results which showed that its UK retail business provided a positive contribution of more than £100 million.
In 2019, the retail business posted losses of £200 million after it was impacted by the acquisition of Innogy and its subsidiary npower.
The main driver for the successful turnaround according to the company is the digitalisation of npower with 90% of customers now migrated to a new digital platform that is powered by Octopus Energy’s Kraken technology following a deal signed last year.
“COVID-19 and the resulting lockdowns have put many business models to a severe test. E.ON, by contrast, successfully completed the financial year without any significant impact, either from the COVID-19 pandemic or from the historically warm winter. E.ON has impressively demonstrated its strength and resilience during the greatest economic crisis in decades. We deliver secure and growing earnings and dividends,” said CEO Johannes Teyssen.
Also read: Acquisitions and mergers have been the biggest form of energy supplier growth
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Further Reading
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‘Green’ Tariffs to come under increased government scrutiny over growing ‘Greenwashing’ concerns
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