SSE losing spark for a merger

ENERGY giant SSE admitted there is “some uncertainty” its merger of its retail operations with rival Npower will go ahead as its half-year profits slumped by over 40 per cent.

Chairman Richard Gillingwater said its results, showing a 40.9 per cent drop in adjusted pre-tax profit to £246.4million, were “disappointing and regrettable” as it lost another 460,000 customers’ accounts.

Its tie-up with fellow Big Six gas and electricity supplier Npower has been delayed as merger terms are renegotiated due to the forthcoming price cap on standard variable tariffs.

SSE said: “The best future for SSE Energy Services will continue to lie outside the group.”