Competition and Markets Authority (CMA) has approved a mega-merger between energy suppliers SSE and Innogy SE’s Npower, paving the way for the energy giants to form a newly listed company on the London Stock Exchange.
The merger would create Britain’s second-largest retail power provider with a 23 per cent market share, closely followed by British Gas. It would also reduce the “Big Six” providers to five.
“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,” said the inquiry group’s chair Anne Lambert.
“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 found that the number of people switching energy providers in Britain was the highest in a decade, and the proportion on SVTs has fallen.