£428m Npower chill at Innogy

GERMAN energy giant Innogy has cut the value of its UK supply business Npower by £428million amid fierce competition and plans for a price cap.

Innogy said the proposed merger of its UK retail supply operation with that of “big six” rival SSE had not affected its assessment of the lower valuation. Npower added 50,000 customers during the third-quarter, but its loss for the year to date widened to £89million from £65million last time.

Innogy said: “The competitive landscape in the UK retail business remains very tough and pressure on margins is very high. Difficult market conditions and political pressure have intensified over the course of the year.”