ENGIE has announced the signing of an agreement to acquire 100% of electricity distributor UK Power Networks (UKPN) for an equity value of £10.5 billion.
The acquisition marks the firm’s ambition to become the “best energy transition utility”, it said, “by strengthening its position in regulated electricity networks”. It will also bolster the group’s presence in the UK, which will become its second-largest country of activity.
With 71 TWh of electricity delivered each year to 8.5 million customers and supported by 6,500 employees, UKPN is one of the leading electricity distribution operators in the UK. It operates three distribution licenses covering London, the South East and East of England, representing a network of around 192,000 km, three-quarters of which is underground.
UKPN’s RAV amounted to £9.2 billion at end-March 2025 and is expected to reach £10.5 billion at the end of the current price control period in March 2028.
ENGIE also said the deal will strengthen its position across the electricity value chain, “complementing its leading roles in upstream renewables and flexible electricity and storage, and in downstream energy management and customer supply”, it said.
ENGIE plans to finance the acquisition through a mix of debt and hybrid issuance for c.€5 billion, and a disposal program of c.€4 billion by 2028. The Group also intends to raise up to €3 billion equity through an accelerated book building (ABB) to support its long term commitment to a strong investment grade rating.
Completion of the transaction is expected in mid-2026, subject to certain regulatory approvals.
Catherine MacGregor, ENGIE CEO, said:
“The acquisition of UKPN represents a decisive step in strengthening ENGIE’s position as the best energy transition utility. It is fully aligned with our ambition to become a key player in regulated electricity network infrastructures, which are essential for energy security, demand electrification and greater system flexibility.
“This transaction will both enhance the Group’s growth trajectory and reduce our risk profile, providing more visibility on future earnings. It also enables us to reinforce our position in the United Kingdom, a key country with a stable regulatory framework and clear decarbonation targets. We are proud to join forces with UKPN’s talented teams as we embark on this new chapter together.”
Basil Scarsella, UK Power Networks CEO, said:
“This transaction marks an important milestone in the history of UKPN and for all its employees. By joining ENGIE, we continue to be part of a global energy leader with the financial strength, industrial capabilities and long-term vision to support our next phase of development as UKPN embarks on a period of significant investment in our network to enable economic growth in London, the South East and East of England.
“It will reinforce our ability to serve our 8.5 million customers with the highest standards of safety, customer service, and reliability. We share ENGIE’s strategic ambition and values and are excited to embark on this new chapter together, ensuring a smooth transition for our teams and continued excellent service for the communities we serve.”
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