SSE merger cleared by competitions chief

The planned merger between Perth-based energy giant SSE and npower has provisionally been given to go ahead by regulators.

The Competitions and Markets Authority has cleared the merger between the two energy suppliers after carrying out a review.

A deal to merge the two companies was announced last November, and a final report from the inquiry is due on Monday, October 22.

This comes after fears the merger would weaken competition within the market and would have an effect on standard variable tariffs.

However, the inquiry found the pair “do not compete closely on standard variable tariff prices”and adds those who are switching their energy supplier tend to move away from the ‘big six’, which includes both SSE and npower.

Following on from this decision, it means the merger is now on track to be completed by early 2019, and will be listed as London company.

Alistair Phillips-Davies, chief executive of SSE, said:“Following a thorough and in-depth investigation, we are pleased the Competitions and Markets Authority has provisionally concluded the proposed merger of SSE energy services and npower does not raise competition concerns.

“The scale and pace of change in the GB energy market continues to be significant and requires us to evolve to stay relevant, competitive and sustainable.

“The planned transaction presents a great opportunity to create a more agile, innovative and efficient company that really delivers for customers and the energy market as a whole.

“We look forward to continuing to engage with the Competitions and Markets Authority as it prepares its final report ahead of the statutory deadline in October.

“We remain confident that the information and listing of the new company is on track for completion by the end of SSE’s financial year.”