Competition probe urged into SSE and Npower merger plans

The UK’S competition watchdog is being urged to investigate the planned £3 billion merger between Perth-based SSE and the owner of Npower amid fears that the deal will spell bad news for energy consumers.

Rachel Reeves, chair of the Business, Energy and Indus- trial Strategy (BEIS) Committee, has asked the Competition & Markets Authority (CMA) to launch a “full investigation” to see if there is any risk to competition within the energy market.

The pair announced last month that they have reached an agreement to merge their operations to create a new energy supplier.

The deal will see SSE and Npower’s parent company, Germany’s Innogy, combine their household energy supply and services business in Britain, turning the Big Six energy suppliers into five.

The MP said in her letter: “The energy market isn’t working for consumers. The proposedmergerbetweensse and Npower risks damaging the development of a more competitive energy market, reducing consumer choice, and threatening to be a bad deal for energy consumers.

“The CMA needs to look at the potential impacts of this merger and launch a full investigation if there is any risk to competition within the energy market.”

SSE said that the merger will help the firms compete in a competitive environment and realise efficiency savings. 0 ‘Full investigation needed’ – Labour MP Rachel Reeves