Energy giant SSE has completed the sale of its retail business to OVO Energy for £500 million.
The acquisition of SSE’s household energy unit Britain follows approval by the Competition and Markets Authority (CMA) and will see OVO take on around 3.5 million customer accounts.
The deal makes OVO, which already serves around 1.5 million customers, one of the biggest suppliers in Britain.
In a statement, OVO said a combination of SSE’s scale and its technology capabilities will enable “millions more customers to decarbonise their homes, while keeping costs down”.
The SSE brand will be operated by OVO under licence for a period, “allowing time for a phased and carefully managed migration and continued high standards of service”.
Stephen Fitzpatrick, CEO and Founder of OVO added: “Today is an exciting day. It marks the end of one chapter for OVO but, more importantly, the beginning of the next one together with SSE Energy Services. We started OVO with a bold ambition to do better for customers and have stayed true to that vision ever since.
“We have an integration plan that leaders from both companies have collaborated on since September. There is a lot of work to do to bring the two businesses together but we have a really strong combination of great talent, technology and customer-centricity that will enable us to succeed.
“SSE’s history of excellence at scale combined with OVO’s innovative technology and our Plan Zero commitments mean that together, as one team, we can bring millions more people with us on our journey towards zero carbon living.”
SSE will continue to supply energy to business customers in Britain and to business and household customers in Northern Ireland and Ireland.
Alistair Phillips-Davies, Chief Executive of SSE said: “The sale is in line with our clear strategy, centred on developing, operating and owning renewable energy and electricity network assets, along with growing businesses complementary to this core.
“SSE enters the new decade as a more focused group, even better positioned to lead the low carbon transformation required to achieve the UK’s vital net zero commitment in the years to come.”