The business has been handled by the below-the-line agency Miller Bainbridge for the past five years.
The agency has decided not to repitch because of conflict arising from its Thames Water business, which it won last year.
The review is being handled by The Haystack Group. Andrew Franklin, the head of customer communications at Powergen, is running it from the client side. The pitch is at an early stage, with credentials meetings set to take place next week.
Miller Bainbridge will continue to work on the Powergen business until the end of the year, when its contract expires.
Powergen's above-the-line advertising is handled by Rainey Kelly Campbell Roalfe/Y&R, which won the brief in 2002 after a shoot-out against Delaney Lund Knox Warren & Partners.
Its most recent advertising, which broke in January, promoted its tie-up with Tesco's Clubcard loyalty scheme, offering customers a Clubcard point for every 拢1 they spent on their energy bill.
The ads featured the comedian Simon Day from the BBC's The Fast Show, whom Powergen signed up to front its advertising for three years last October.
Media is by Initiative.
The above-the-line business was previously split between Soul, which created the weather idents, Saatchi & Saatchi and Miller Bainbridge.
The appointment of RKCR/Y&R followed the acquisition of Powergen by the German utility company E.ON.
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