CAP ENERGISES MERGER

The Government’s planned energy price cap hastened a proposed mega merger between SSE and npower.

Peter Terium, boss of npower’s German owner Innogy, said limiting rip-off standard variable tariffs was not the reason for the tie-up.

But he admitted it had caused the decision to be made “quicker”.

Terium also slammed what he called “political interference” in the energy market.

SSE and Innogy yesterday confirmed plans to merge their UK energy supply arm, creating a new player with 11.5 million customers and £11billion of sales. The deal faces a competition probe as the combined business would rival industry giant British Gas. Terium denied that going from six to five big suppliers would mean prices would rise in the energy market.

But he refused to rule out job losses as he confirmed one reason for the deal was to slash costs. Unison national energy officer Matt Lay said: “As well as seeking assurances about jobs, we plan to work closely with senior managers to ensure the company that emerges has a robust business plan.” Ed Kamm, from smaller supplier First Utility, said: “This smacks of two dinosaurs coming together to survive.”

The City watchdog yesterday launched an investigation into the £68billion wholesale insurance broking market. The Financial Conduct Authority said its probe was aimed at ensuring that the sector was working correctly and in the interests of clients.

The London insurance market is one of the world leaders for large-scale, complex commercial and specialist risks.