The utilities company hired RKCR/Y&R after a final pitch against Delaney Lund Knox Warren & Partners. The creative work was then put into research.
RKCR/Y&R will handle all creative strategy for Powergen, covering its TV advertising and creative for its ITV weather sponsorship idents and rugby sponsorship. However, the ident creative may be executed by another agency.
Powergen's account was previously split between Soul, which created the weather idents, Saatchi & Saatchi and Miller Bainbridge. Miller Bainbridge will continue to handle below-the-line activity for Powergen.
The selection of RKCR/ Y&R follows the acquisition of Powergen by the German utility company E.ON. Powergen's new owner is unlikely to scrap the brand and may rebrand further acquisitions with the Powergen name.
MT Rainey, the joint chief executive of RKCR/Y&R, said: "Powergen is a strong brand name and has a leadership position to be taken to the market."
Powergen's previous creative featured animated characters to communicate its price offers. RKCR/Y&R will develop new creative for a TV campaign breaking later this year with the fourth quarter being the likely launch time for the advertising.
RKCR was appointed by John Evans, the marketing director of Powergen. Media planning and buying, which is handled by Initiative Media, is not affected by the review.
In addition to gas and electricity, Powergen also offers telephone services in the UK.
Evans said: "There was a host of reasons for selecting Rainey Kelly. The main thing is we are looking for a move away from marketing tactics based on bringing in more customers through competitive costs toward building a brand in the marketplace. Rainey Kelly came up with the best creative and brand building ideas."