logo-loader
viewSSE PLC

UK competition watchdog to further scrutinise planned merger of SSE and Npower on worries over higher prices

The Competition and Markets Authority said the merger would be referred for a longer Phase 2 investigation unless the parties offer acceptable undertakings to address the competition concerns

SSE sign
SSE said it continues to believe that the proposed merger will deliver benefits for the energy market and customers

The UK competition watchdog is to further scrutinise the planned merger of SSE plc's (LON:SSE) retail power and gas business in the UK with Npower, owned by German rival Innogy, as it believes it could lead to higher prices for customers.

The Competition and Markets Authority said the merger would be referred for a longer Phase 2 investigation unless the parties offer acceptable undertakings to address the competition concerns.

READ: SSE in talks with CMA over planned npower merger as it lifts earnings forecast

Rachel Merelie, senior director at the CMA said: "We know that competition in the energy market does not work as well as it might.

"However, competition between energy companies gives them a reason to keep prices down.”

She added: "We have found that the proposed merger between SSE Retail and Npower could reduce this competition, and so lead to higher prices for some customers.

“We therefore believe that this merger warrants further in-depth scrutiny."

In a statement in response to the CMA announcement, SSE said that it will take its time to assess the CMA's statement, but continues to believe that the proposed merger will deliver benefits for the energy market and energy customers.

Alistair Phillips-Davies, chief executive of SSE, said: "We remain confident that the proposed merger will deliver benefits for customers and for the energy market as a whole and that we will be able to demonstrate this to the CMA in due course.

“We look forward to continuing to work constructively with the CMA and other interested parties."

Quick facts: SSE PLC

Price: 1415.5 GBX

LSE:SSE
Market: LSE
Market Cap: £14.63 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Fertoz continues to plan for the future despite extremely...

Fertoz Ltd (ASX: FTZ) Executive Chairman Patrick Avery joined Steve Darling from Proactive Vancouver on Skype to discuss what has been a very tough weather year for the company. Even with that, Avery says the company has been very busy this year signing a number of distribution...

2 days, 7 hours ago

2 min read