Ovo reportedly set to make bid for energy rival Bulb
Ovo Energy is ready to make a bid for rival Bulb as it looks to consolidate its position in the UK’s struggling energy sector, which has been battered by soaring gas prices and company collapses.
Ovo completed the takeover of SSE's retail customer base nearly two years ago and is said to be putting an offer together, backed by Mitsubishi, its biggest shareholder, UK media reported.
The crisis in the UK energy market has triggered the demise of more than a half a dozen companies in recent weeks, with the customer base of the largest - Avro Energy - being taken on by Octopus Energy.
Any deal would add Bulb's 1.7 million customers to Ovo's 4.5 million, and would make it the second largest firm behind Centrica's British Gas.
Customers have found themselves with little choice of supplier as wholesales gas prices continue to rise unabated. The UK has an energy price cap, which increased to £1,309 on October 1 and expectations are that it will rise again next spring.
E.ON Next, the new brand which combines customers from E.ON and npower, has around 5.2 million residential customers, while British Gas remains the market leader with about 7 million customers.
EDF Energy, the French state-owned supplier, and Scottish Power make up the remaining members of the former "big six".