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.