E.ON and Kraken Technologies, part of Octopus Energy Group, announce they have entered a strategic agreement regarding E.ON’s UK residential and SME energy retail businesses. This is the culmination of many months work, and in spite of the unprecedented challenges of the coronavirus pandemic, it underlines E.ON’s long-term commitment to the UK and to providing excellent service to customers. As part of the partnership, E.ON will establish the subsidiary E.ONnext. E.ONnext will use the innovative customer platform of Kraken Technologies and develop it further in close cooperation with Kraken Technologies. The E.ONnext brand promises sustainability, customer focus and cost efficiency based on future-proof technology.
In November 2019, E.ON UK had decided on a comprehensive package of measures to restructure its business in the United Kingdom. E.ONnext will bring about a clear turnaround in the business's operating performance E.ONnext will bring about a clear turnaround in the business's operating performance. E.ON expects a combined EBIT of at least GBP100m in 2022. The EBIT is expected to be improved by more than GBP 50m in 2023 and more than GBP 100m beyond 2023 compared to the previous plan. In addition, E.ON expects to generate positive free cash flow from 2023 onward.
The E.ONnext platform will be the future-proof alternative to the E.ON platform currently in use. In a first step, npower's former residential and commercial customers will migrate from spring 2020, with E.ON UK's residential and commercial customers following from 2021. Kraken Technologies' strong expertise will further ensure the success of the migrations and the smooth customer experience.
Karsten Wildberger, COO and Member of the Board of Management of E.ON SE: “In November we announced that we would successfully reposition our business in the U.K. and counter the difficult market conditions. The formation of E.ONnext is the key step in achieving this goal quickly and to the benefit of our customers in the U.K. We'll leverage the advantages of the innovative Kraken platform to deliver outstanding customer service and at the same time be a long-term cost leader. We believe that this strategy will provide a sustainable future for our UK operations while delivering significant benefits to the whole Group – not least through the immense value and re-use of market leading, future-proof technologies and processes that will enable customers to receive excellent service at all times.”
E.ON UK's partnership with Kraken Technologies is not only beneficial to customers, employees, investors and regulators, but also heralds a sustainable future for E.ON UK's residential and commercial customer business. The partnership with Kraken Technologies will help E.ON UK to achieve a cost-leading market position in the UK energy landscape in the long term, replacing E.ON's current technology platform with a future-proof platform and ensuring that customers receive an easy to understand, transparent and personalized customer service.