The deals total 2 billion (£1.7 billion), to a source speaking to the , even though the original tender was for up to 3.3 billion. E.ON declined to confirm the value.

The deals are part of the utility's 'PerformToWin' strategy, which is aimed at improving processes. HP will support E.ON's data centres and PCs, while T-Systems runs networking.

Some 1,400 of E.ON's 4,100 IT employees will transfer to HP and T-Systems. The 2,700 remaining will stay at E.ON's IT department, which will continue to decide IT strategy, and will run applications, security and the main power station control systems.

In January, E.ON announced from its IT function, following the closure of a call centre in Essex and an internal performance review.

Announcing the new contracts this week, Edgar Aschenbrenner, chairman at E.ON's internal IT function, said the company will aim to "streamline our IT and make it more efficient".