Acquisitions set to change non-domestic energy market landscape

Research by Cornwall Insight into the non-domestic supply market share highlights a changing market share landscape due to recent acquisitions. When the E.ON UK and npower merger completes the rankings for larger suppliers in the electricity market will change significantly.

Figures from our ‘Business market share survey’ show that the merger between the two companies’ industrial and commercial (I&C) segments, set to be complete by the end of 2021, will see E.ON UK hold 22%* of the electricity market share by I&C volume. The earlier announcement to combine portfolios between the suppliers’ small and medium enterprises onto a new platform will also see E.ON UK hold 22%* of the market here. This is highlighted in the below graph.

non-domestic market share survey

Molly Lloyd, Analyst at Cornwall Insight, said:

“npower’s merger with E.ON Group will lead to changes in larger suppliers’ market share rankings. E.ON UK’s merger in the I&C market will see EDF Energy fall to second position, 1.8% behind the combined business.

“It is not just the I&C market that will be shaken up by the merger. The I&C merger follows an 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.

“As a result, the combined SME business becomes the largest supplier in the SME electricity market by meters; this would see British Gas, the largest supplier by SME meters since April 2018, fall to second position with a market share of 20.0%.

“Consolidation between suppliers is already having an impact on the market, with changes in the rankings afoot. However, ranking changes in the business market depend heavily on the six-month performance of the current top suppliers at this difficult time.”


Notes to Editors

*Using April 2020 market share figures

Business electricty market share survey