The Competition and Markets Authority has indicated it will give the green light to the SSE-Npower merger.
Once approved, the deal will see SSE keep its business-to-business customers, while the new retail company will combine SSE’s domestic customers and Npower’s domestic and business customers.
Competition concerns had hinged around how the deal might affect households on the poorest value tariffs, so-called standard variable tariffs, or SVTs. These customers tend to be those that do not switch to more aggressively priced fixed-term deals.
The CMA said its initial findings suggest Npower and SSE customers on these deals are unlikely to be affected in terms of how the merged entity would set prices.
It is now likely to officially clear the merger by 22 October. The two firms have already appointed senior staff to lead the merged retail entity.
“Following a thorough and in-depth investigation, we are pleased the CMA has provisionally concluded that the proposed merger of SSE Energy Services and Npower does not raise competition concerns,” said SSE chief executive Alistair Phillips-Davies.
“The scale and pace of change in the GB energy market continues to be significant and requires us to evolve to stay relevant, competitive and sustainable. The planned transaction presents a great opportunity to create a more agile, innovative and efficient company that really delivers for customers and the energy market as a whole.”
“We look forward to continuing to engage with the CMA as it prepares its final report ahead of the statutory deadline in October. We remain confident that the formation and listing of the new company is on track for completion by the end of SSE’s financial year.”
Related stories:
SSE shareholders give green light to Npower deal
SSE+Npower merger ‘warrants further scrutiny’, says watchdog
MPs urge competition watchdog to probe SSE-Npower merger
SSE merger: Npower says business customers will not feel billing pain
SSE and Innogy appoint finance chief for proposed retail company
Amazon would be a good buyer for SSE+Npower
SSE customer losses accelerate
Aborted billing system upgrade hits SSE profits
Click here to see if you qualify for a free subscription to the print magazine, or to renew.
Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.
