SSE and Npower’s retail businesses will merge following the nod from the Competition and Markets Authority (CMA), bringing an end to the era of the ‘big six’ suppliers.
The CMA had indicated in August that SSE-Npower deal was in the clear, today it granted official confirmation. Its investigation centred on whether customers on Npower and SSE’s most expensive tariffs would be adversely affected by the merger. The watchdog found they would not, because those switching tariffs tend to go to other suppliers, where cheaper deals via fixed and aggressive acquisition tariffs can be found.
The two companies have hired key management and aim to conclude the transaction by the end of SSE’s financial year (31 March).
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.
SSE’s shareholders approved the merger in July.
Related stories:
CMA indicates SSE-Npower merger in the clear
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.
