Wiktor Wise
The UK's electricity companies are owned by a mix of British and foreign companies. Three of the alternative energy companies have been owned by local authorities, while others are owned by foreign companies, such as Électricité de France, which owns EDF Energy, and E.ON, which is German-owned. Some companies, such as OVO Energy, are wholly owned by a single group, while others, such as Octopus Energy, are owned by a group of companies with shareholders from around the world.
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What You'll Learn
Foreign ownership of UK electricity companies
EDF Energy
EDF Energy is owned by the French government-owned energy company EDF (Électricité de France) Group. EDF Energy was formed in 2002 when its parent company, EDF, acquired several UK energy businesses across the south of England, including SWEB Energy plc, Seeboard plc, and the London Electricity Board. EDF Energy is the UK's fifth-largest electricity and gas supplier, with approximately five million UK customers.
E.ON
E.ON, another member of the "big six," is a German-owned group formed from the merger of German companies VEBA and VIAG. The company acquired the UK energy supplier Powergen in 2002 and subsequently changed its name to E.ON in 2007. E.ON also owns Npower, which it acquired in 2018.
Scottish Power
Scottish Power is owned by Iberdrola, a Spanish energy firm. The company was formed in 1990 ahead of the privatisation of Scotland's energy supply the following year. Scottish Power was acquired by Iberdrola in 2007 and has since become one of the largest energy suppliers in the UK.
Octopus Energy
While Octopus Energy is owned by the UK-based Octopus Group, the company has expanded globally and has shareholders from various countries, including Origin (Australia), Tokyo Gas (Japan), Generation (United States), and the Canadian CPP Investment Board.
In addition to these large suppliers, it is worth noting that foreign ownership extends to smaller energy companies and local initiatives. For example, London Power, launched by the Mayor of London in 2020, is a partnership with Octopus Energy. The offshore wind industry and onshore wind farms are also significantly owned by foreign companies, with Denmark and Sweden having notable stakes.
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The UK's biggest electricity suppliers
The UK's energy market has witnessed significant changes in terms of which suppliers have dominated market share since the early 2000s. The "Big Six" energy suppliers emerged from the 15 former incumbent monopoly suppliers and dominated the market following liberalisation in the late 1990s. The six companies were British Gas, EDF Energy, E.ON (now E.ON Next), RWE Npower, Scottish Power, and SSE. In 2008, the Big Six held over 99% of domestic and small business customers in the UK.
However, their combined market share decreased to 70% for electricity supply and 69% for gas in Great Britain by the third quarter of 2019, due to efforts by the regulator Ofgem to promote competition. The purchase of SSE by OVO Energy in January 2020 marked the end of the original Big Six. As of February 2025, Octopus Energy, which entered the market in 2015, is the largest energy supplier in the UK in terms of market share, supplying 23.7% of UK households.
Octopus Energy is owned by a group of companies led by the British Octopus Group, which holds a majority shareholding. Other shareholders include Origin (Australia), Tokyo Gas (Japan), Generation (US), and the Canadian CPP Investment Board.
Other notable electricity suppliers in the UK include:
- British Gas: Its parent company, Centrica, is a UK-owned multinational utility company based in Windsor, Berkshire.
- EDF Energy: A subsidiary of the French government-owned energy company EDF (Électricité de France) Group.
- E.ON Next: A German-owned group formed from the merger of German companies VEBA and VIAG.
- OVO Energy: Wholly owned by the OVO Group, which is part-owned by its billionaire founder Stephen Fitzpatrick and investment groups such as Morgan Stanley Investment Management and Mayfair Equity Partners.
- Scottish Power: Now owned by Spanish energy firm Iberdrola, it provides energy to around five million homes and businesses in the UK.
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Local authority-owned electricity companies
The electrical power industry in the United Kingdom was nationalised by the Electricity Act 1947, when over six hundred electric power companies were merged into twelve area boards.
Since then, there have been three local authority-owned electricity companies: Robin Hood Energy, Bristol Energy, and London Power. Robin Hood Energy, owned by Nottingham City Council, was the first such company since 1948 when it entered the market in 2015. Bristol Energy, owned by Bristol City Council, was also launched in 2015. Both Robin Hood Energy and Bristol Energy were available to consumers throughout the country until their demise in 2020.
In January 2020, London Power was launched by the Mayor of London. Unlike the other two companies, it only provides gas and electricity to London homes. London Power is not itself an energy supplier but is instead a partnership between the Greater London Authority and a providing partner, currently Octopus Energy.
Octopus Energy is owned by a group of companies led by the British Octopus Group, which holds a majority shareholding. Other shareholders include Origin (Australia), Tokyo Gas (Japan), Generation (United States), and the Canadian CPP Investment Board.
Prior to nationalisation, there were many local electricity suppliers in the UK, including:
- West Midlands Joint Electricity Authority
- North Eastern Electric Supply Company Limited (NESCo)
- Sedbergh Electricity Supply Company
- South Cumberland Electricity Supply Company
- Windermere and District Electricity Supply Company
- London and Home Counties Joint Electricity Authority
- Brompton and Kensington Electricity Supply Company
- Central Electric Supply Company
- Central London Electricity Limited
- Chelsea Electricity Supply Company
- City of London Electric Lighting Company
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British-owned electricity companies
The UK's energy market has traditionally been dominated by the 'Big Six' energy suppliers, which emerged in the late 1990s following the liberalisation of the market. The original Big Six consisted of British Gas, EDF Energy, E.ON, RWE npower, Scottish Power, and SSE. However, in 2020, OVO Energy purchased SSE's retail business, marking the end of the original Big Six.
Three of the alternative energy companies have been owned by local authorities. The first such company since 1948 was Robin Hood Energy, owned by Nottingham City Council, which entered the market in 2015. Bristol Energy, also launched in 2015, was owned by Bristol City Council. Both Robin Hood Energy and Bristol Energy were available to consumers throughout the country until their demise in 2020. In January 2020, London Power was launched by the Mayor of London. London Power is not itself an energy supplier but is a partnership between the Greater London Authority and a providing partner, currently Octopus Energy.
Octopus Energy is currently the largest energy supplier in the UK in terms of market share, supplying 23.7% of UK households as of February 2025. It is owned by a group of companies led by the British Octopus Group, which holds a majority shareholding. Other shareholders include Origin (Australia), Tokyo Gas (Japan), Generation (United States), and the Canadian CPP Investment Board.
Another British-owned energy company is Centrica, a multinational utility company based in Windsor, Berkshire. Centrica is the parent company of British Gas, which is the UK's largest supplier of gas, powering over 8 million houses and businesses. Centrica also supplies gas and electricity to more than 10 million customers in the UK, Ireland, North America, Scandinavia, and the Netherlands.
ScottishPower, formed in 1990 ahead of the privatisation of the Scottish electricity industry, is another major British-owned electricity company. It is owned by the Spanish energy firm Iberdola. ScottishPower distributes and supplies electricity and gas in the United Kingdom, generating more than 1,900 megawatts of electricity from its 38 onshore wind farms. As the transmission owner for the south of Scotland, it is responsible for transferring high-voltage electricity from power plants to its 150 substations at lower voltages.
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The history of UK electricity companies
The history of electricity companies in the UK can be traced back to the 19th century, with the emergence of early energy sources such as coal and wood. The Industrial Revolution played a significant role in the development of human-generated electricity, with Benjamin Franklin often credited with "discovering" electricity in 1752 by realising that lightning strikes could generate power.
In the 1800s, coal was widely used for power, and in 1769, James Watt patented the world's first coal-powered steam engine, revolutionising factories and mills. The gas industry was born in 1812 when Frederick Winsor created the first company to distribute gas to customers through underground pipes. This marked a significant step towards reliable light, heat, and energy for millions. The Victorian era witnessed further advancements, including the first hydroelectric plant in Cragside, UK, in 1878, and the world's first coal-fired power station, the Edison Electric Light Station, in London in 1882.
The late 19th and early 20th centuries saw the formation of numerous electric power companies in the UK, including the Chelsea Electricity Supply Company (1886), the Kensington and Knightsbridge Electric Lighting Company (1888), and the London Electric Supply Corporation (1887). These companies played a pivotal role in supplying electricity to specific regions, often through generating stations.
In 1926, the Electricity Supply Act led to the creation of the Central Electricity Board, which aimed to centralise electricity generation in a limited number of power stations interconnected by a national grid. This grid was largely completed by 1935, connecting large, predominantly coal-fired power stations. Technological advancements in the 1960s enabled the development of a "Supergrid", allowing the interconnection of even larger power stations.
In 1947, the Electricity Act nationalised the electrical power industry, merging over 600 electric power companies into twelve area boards. This marked a shift towards centralised control and coordination of electricity supply in the UK.
More recently, the UK energy market has been dominated by the "Big Six" suppliers, including British Gas, EDF Energy, E.ON, RWE npower, Scottish Power, and SSE. However, since the late 2010s, there has been a rise in independent energy suppliers, such as First Utility and Bulb Energy, offering alternatives to traditional energy sources and focusing on renewable energy.
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Frequently asked questions
British Gas is owned by Centrica, a UK-based multinational utility company.
EDF Energy is owned by Électricité de France, a French government-owned company.
E.ON is a German-owned group formed from the merger of German companies VEBA and VIAG.
OVO Energy is wholly owned by the OVO Group, which is part-owned by a range of investors, including its billionaire founder Stephen Fitzpatrick.
