SSE/Npower merger cleared following major review

The merger between SSE Retail and Npower has been given clearance, following an investigative review.

The decision - from the inquiry group of independent Competition and Markets Authority (CMA) panel members - investigated how the merger would affect householders.

The group examined competition concerns around how the deal would impact ‘standard variable tariff’ prices. The review also found SSE Retail and Npower to not be close rivals on such tariffs.

Anne Lambert, chair of the Inquiry Group, said: “With many energy companies out there, people switching away from expensive standard variable tariffs will still have plenty of choice when they shop around after this merger.

“But we know that the energy market still isn’t working well for many people who don’t switch, so we looked carefully at how the merger would affect SVT prices.

“Following a thorough investigation and consultation, we are confident that SSE and Npower are not close rivals for these customers and so the deal will not change how they set SVT prices.”

The CMA discovered that the number of people switching energy provider is the highest in 10 years, and the proportion on SVTs has fallen, with customers usually switching to a cheaper, non-SVT, tariff.

It found that SVT prices are mainly driven by changing wholesale costs, but the large energy suppliers take account of each other’s tariff changes when choosing the size and timing of their own.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →