SSE tie-up gets thumbs up from watchdog

0 The merger would reduce the Big Six energy suppliers to just five

SSE, the Perth-based utility giant formerly known as Scottish & Southern Energy, has been given a thumbs up for controversial plans to merge its retail operations with those of rival Npower.

The Competition and Markets Authority (CMA) has provisionally cleared the deal, which would reduce the Big Six energy suppliers to five.

The CMA dismissed fears that the tie-up would have an impact on the most expensive deals as its inquiry found the providers do not compete

closely on standard variable tariffs (SVTS).

Anne Lambert, chairwoman of the inquiry group at the CMA, said: “With more than 70 energy companies out there, we have found that there is plenty of choice when people shop around.”

Underthedeal,thenewcompany would be listed on the London Stock Exchange with SSE shareholders holding 65.6 per cent and Npower owner Innogy holding 34.4 per cent.

The merged group will serve 11.5 million customers.