Air­tric­ity not im­pacted by SSE power merger

Irish Independent - Business Week - - BUSINESSWEEK - John Mul­li­gan

AIR­TRIC­ITY owner SSE has said the merger of its Bri­tish house­hold en­ergy busi­ness with Npower will not im­pact its res­i­den­tial ser­vices in Ire­land.

SSE and Ger­man-owned Npower con­firmed yes­ter­day that they’re merg­ing their res­i­den­tial busi­nesses in Bri­tain. The com­bined en­tity will be among the big­gest elec­tric­ity and gas providers there, with 11.5 mil­lion cus­tomers.

It is also likely to pose a chal­lenge for the ESB. It is gear­ing up for a full as­sault on the UK en­ergy market, with im­mi­nent plans for a full launch of res­i­den­tial gas and elec­tric­ity pro­vi­sion.

“The scale of change in the en­ergy market means we be­lieve a sep­a­ra­tion of our house­hold en­ergy and ser­vices busi­ness and the pro­posed merger with Npower will en­able both en­ti­ties to fo­cus more acutely on pur­su­ing their own ded­i­cated strate­gies,” said SSE chief ex­ec­u­tive Alas­tair Phillips-Davies.

SSE’s share­hold­ers will hold just over 65pc of the new com­pany. Innogy, which owns Npower, will own the re­main­der.

SSE con­firmed that fol­low­ing the sep­a­ra­tion of its re­tail busi­ness in Bri­tain, SSE will con­tinue to op­er­ate Air­tric­ity.

At the end of Septem­ber, Air­tric­ity sup­plied power to a to­tal of 770,000 house­holds and busi­nesses on the is­land of Ire­land. That fig­ure was down from 790,000 at the end of March. SSE blamed the de­cline on com­pet­i­tive pres­sure.

SSE chief ex­ec­u­tive Alas­tair Phillips-Davies

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