GRAHAM HISCOTT Energy cap blamed for merger collapse

A mega merger between two of Britain’s biggest energy suppliers has been ditched.

SSE and npower blamed “challenging market conditions” and a new cap on rip-off energy deals.

The decision to pull the plug comes at a late stage, with the deal already given watchdog approval and expected to be done in the coming months.

However, it was not unexpected after SSE last month admitted there was “some uncertainty”.

It came as energy regulator Ofgem announced the level of a cap on standard variable rate tariffs from next month. SSE will now consider a standalone demerger and listing, a sale or an alternative transaction for its household energy division. Stephen Murray, energy expert at the website Moneysupermarket, called the deal collapse disappointing.

“It could have delivered efficiencies and customer benefits that the two suppliers, individually, may struggle to make,” he said.

Meanwhile, Keir Howe, from the GMB union warned: “We are very concerned about what the future holds for our npower members and we are demanding assurances from the company.”

More than 1,000 restaurants went bust in the year to September, according to accountants Moore Stephens. The 24% leap comes as Carluccio’s, Prezzo and Jamie’s Italian closed a raft of outlets.