French-owned EDF Energy in talks to acquire smaller rival So Energy

The French-owned utility EDF Energy is in talks to acquire smaller rival So Energy in a deal that would underline the renewed wave of consolidation taking place in the domestic gas and electricity supply market.

Sky News has learnt that EDF is one of a small number of parties in discussions with So Energy's owners about a deal.

Industry sources said it faced competition from at least one other bidder, whose identity could not be ascertained on Sunday.

If EDF Energy prevails in the auction of So Energy, the deal is likely to comprise the acquisition of its customer base, rather than a takeover of the wider company, according to insiders.

EDF is one of the group of big six energy suppliers which dominate the UK market, with three million customers and five million accounts.

However, like Scottish Power, it now lags by some distance the market leaders Octopus Energy and British Gas, which is owned by Centrica.

Two of the other big players, EON and Ovo Energy, are in the process of merging in a deal which will create a supplier comparable in size to the two biggest players.

So Energy, which has around 300,000 household electricity customers, is working with advisers at PricewaterhouseCoopers on a process to find new owners.

The business, founded in 2015, is majority-owned by Ireland's Electricity Supply Board, which acquired a controlling stake in 2021.

On Sunday, a spokesperson for the company said: "So Energy is considering a range of options but cannot comment any further on them as it is commercially sensitive."

Read more from Sky News:
HMRC threatened with legal action over settlement trade
NCP administrators in talks to sell scores of car park sites

In an earlier statement issued in July, So Energy said: "Our parent company, ESB, has initiated a process to evaluate potential divestment options for So Energy.

"Following a strategic review, ESB plans to focus on its core business."

News of EDF Energy's interest in a deal comes as Britons brace for a rise in energy bills in the autumn after regulator Ofgem lifted the price cap by 4% to £1,723.

Andy Burnham, the prime minister, announced in his first week in office that VAT on domestic energy bills would be scrapped as part of efforts to ease the cost of living.

"So Energy is a well-run, fully hedged and efficient supplier with a secure customer base and a decade-long record of excellent customer service," the company said in July.

It added that it "remains business as usual, with customers' energy supply and support unaffected".

(c) Sky News 2026: French-owned EDF Energy in talks to acquire smaller rival So Energy